WATNEUTRAL

EV/EBITDA

37.1x

Updated 200h ago

Sector Performance

90th percentile

WAT

37.1x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

Enterprise value to EBITDA (EV/EBITDA) compares a company’s total value — including debt — to its earnings before interest, taxes, depreciation, and amortization, giving a sense of how many years of those earnings it would take to buy the whole firm.

At 37.1x, WAT trades far above the sector median of 13.9x, placing it in the 90th percentile among peers, indicating the market expects premium growth or profitability relative to the industry. The metric has been increasing over the last eight quarters, with a year-over-year jump of +59.9% but a near-flat quarter-over-quarter change of -0.2%. A high and rising EV/EBITDA suggests investors are paying more for each dollar of cash earnings, which introduces valuation risk if growth disappoints. That elevated multiple, combined with the upward trend, typically signals heightened downside potential. This contradicts a bullish outlook but supports the overall NEUTRAL verdict by underscoring that the stock’s rich valuation warrants caution.

Frequently Asked Questions

What does the EV/EBITDA tell investors about WAT?

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 WAT'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.