TSCONEUTRAL

EV/EBITDA

11.5x

Updated 32h ago

Sector Performance

37th percentile

TSCO

11.5x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

EV/EBITDA compares a company's enterprise value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization; a lower multiple often suggests the stock is cheaper relative to its cash earnings.

At 11.5x, TSCO's valuation sits below the sector median of 13.7x, placing it in the 38th percentile among its peers, meaning it is cheaper than about 62% of comparable companies. The metric has been stable over the last eight quarters, with a year-over-year change not available and a quarter-over-quarter decline of -0.4%. A stable, below-median EV/EBITDA combined with a slight recent dip could imply limited downside risk from valuation compression but also no sign of accelerating earnings momentum to drive a re-rating higher. This combination does not clearly signal a strong opportunity or elevated risk, which aligns with the overall NEUTRAL verdict. The metric supports that view by showing TSCO is modestly undervalued relative to peers, but without a clear catalyst from the trend direction.

Frequently Asked Questions

What does the EV/EBITDA tell investors about TSCO?

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 TSCO'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.