TROWNEUTRAL

EV/EBITDA

8.1x

Updated 248h ago

Sector Performance

21th percentile

TROW

8.1x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

The current EV/EBITDA of 8.1x means the company is valued at 8.1 times its earnings before interest, taxes, depreciation, and amortization, a measure of operating cash flow relative to enterprise value.

This is well below the sector median of 13.9x, placing TROW in the 20th percentile among its peers, indicating a lower valuation compared to most. The year-over-year change is not available, but the quarter-over-quarter change is +1.5%, showing a slight uptick from the prior quarter’s 7.9x. The combination of a low valuation with a small upward trend may suggest limited downside risk but also no strong catalyst for a re-rating, keeping the opportunity balanced. This metric supports the overall NEUTRAL verdict, as the discounted multiple is offset by the modest recent increase, leaving neither a clear buy nor sell signal.

Frequently Asked Questions

What does the EV/EBITDA tell investors about TROW?

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 TROW'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.