TAPCAUTIOUS

EV/EBITDA

5.6x

Updated 128h ago

Sector Performance

13th percentile

TAP

5.6x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

The current EV/EBITDA of 5.6x means that for every dollar of TAP’s operating earnings (EBITDA), the market values its entire enterprise (equity plus debt) at just 5.6 dollars — a low valuation relative to earnings.

Compared to the sector median of 13.6x, TAP sits at the 13th percentile among peers, meaning it is cheaper than 87% of comparable companies. The metric has been stable over the last eight quarters, with no year-over-year change available and a quarter-over-quarter decline of -0.9%. A low and stable EV/EBITDA can imply limited downside if earnings hold, but it may also reflect persistent concerns that keep the multiple compressed. This combination presents a potential opportunity for value-oriented investors, yet the lack of upward momentum suggests no imminent re-rating catalyst. Overall, this metric contradicts the CAUTIOUS verdict — a deeply discounted multiple normally signals lower risk, not caution.

Frequently Asked Questions

What does the EV/EBITDA tell investors about TAP?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are TAP's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.