WBANEUTRAL

EV/EBITDA

-3.6x

Updated 1926h ago

Sector Performance

6th percentile

WBA

-3.6x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

The current EV/EBITDA of -3.6x means Walgreens Boots Alliance's enterprise value is negative relative to its earnings before interest, taxes, depreciation, and amortization, which indicates the company is currently generating negative EBITDA and is valued below its debt and equity obligations.

For context, the sector median EV/EBITDA is 14.5x, and WBA ranks in the 3rd percentile among sector peers, meaning its multiple is far lower than nearly all comparable companies. The metric has been completely stable over the past eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. The combination of a deeply negative level and a flat trend signals persistent underlying profitability issues with no recent improvement, which elevates investment risk rather than presenting an opportunity. This metric contradicts the overall NEUTRAL verdict, as a negative EV/EBITDA at the 3rd percentile of peers is a clear warning of financial distress that typically warrants a bearish view.

Frequently Asked Questions

What does the EV/EBITDA tell investors about WBA?

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 WBA'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.