TMONEUTRAL

TMO EV/EBITDA Analysis

21.8x

Updated 275h ago·SEC filings & market data

Key Takeaway

EV/EBITDA, or enterprise value divided by earnings before interest, taxes, depreciation, and amortization, measures how many times a buyer pays for a company's operating profit; at 21.8x, TMO trades at a premium to the sector median of 13.5x, placing it in the 77th percentile among peers.

Sector Performance

78th percentile

TMO

21.8x

Sector Median

13.6x

Sector Avg

-62.3x

Prior Period

21.5x(Jul 2026)

↓ Declining

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Deep Analysis

The metric has been stable over the last 8 quarters, though the year-over-year change is not available while the quarter-over-quarter change is +1.4%, reflecting an increase from the prior values of 21.5x and 21.4x. This combination of a high valuation with a stable, slightly rising trend implies limited margin of safety for new investors, but the consistency lowers the risk of a sudden re-rating. The elevated level suggests market expectations for continued earnings performance, so any shortfall could pressure the multiple. This metric supports the overall NEUTRAL verdict: the premium is not extreme enough to warrant a negative stance, yet it leaves little room for upside without earnings growth.

Frequently Asked Questions

What does the EV/EBITDA tell investors about TMO?

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 TMO's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: FLNC (-22.5x), EVGO (-22.6x), LSPD (-26.9x), BRZE (-29.6x), RBLX (-31.4x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

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.