U EV/EBITDA Analysis

EV/EBITDA compares a company’s enterprise value to its earnings before interest, taxes, depreciation, and amortization; a multiple of 191.6x means investors are paying $191.60 for each dollar of operating profit, which is extremely high relative to earnings.

This sits far above the sector median of 13.7x, placing U in the 99th percentile among peers. While the metric has been decreasing over the last eight quarters, the year-over-year change is not available, and the quarter-over-quarter change shows an increase of +9.5% from 174.9x to 191.6x. The elevated level combined with a near-term upward move signals that the stock remains very expensively valued despite a longer-term downward trend, suggesting high downside risk if growth expectations are not met. This directly supports the overall CAUTIOUS verdict, as the combination of an extreme valuation and a recent uptick in the multiple reinforces the need for caution.

Frequently Asked Questions