ULTANEUTRAL

EV/EBITDA

11.8x

Updated 78h ago

Sector Performance

40th percentile

ULTA

11.8x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

ULTA’s current EV/EBITDA of 11.8x means the company’s enterprise value (market cap plus debt minus cash) is 11.8 times its earnings before interest, taxes, depreciation, and amortization — a common measure of valuation that strips out capital structure and non-cash charges.

This sits below the sector’s median of 13.6x, placing ULTA in the 40th percentile among its peers, indicating it trades at a modest discount relative to the typical company in its space. Over the last eight quarters the metric has been stable, with no year-over-year change available and a quarter-over-quarter increase of just +1.6%, reflecting little movement from 11.6x to the current 11.8x. The combination of an EV/EBITDA below the sector median and a flat trend suggests limited near-term valuation expansion or compression, implying a neutral risk profile where the stock is neither cheapening nor becoming overpriced relative to earnings. This metric supports the overall NEUTRAL verdict, as the discount to peers is not large enough to signal a clear opportunity, nor is the stable trend creating a warning of overvaluation.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ULTA?

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 ULTA'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.