The enterprise multiple is a ratio that compares a company’s enterprise value to its earnings before interest, tax, depreciation, and amortization. In letters: EV/Ebitda. In the numerator ...

I find little to differentiate Energy Transfer from large peers to justify that kind of valuation gap. What if ET enjoyed an EV / EBITDA multiple comparable to peers? First, parameters are in order.

BofA Securities' valuation approach applies an approximate 11 times enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) multiple. This multiple is ...

Discover why Toast (TOST) is downgraded to sell amid unsustainable valuation at 41.9x EV/EBITDA, rising risks, and better opportunities for reallocating.

The chart shows the Enterprise Value to Consensus Next twelve-month (NTM) EBITDA multiples of fourteen major MSOs from 4/14/23 (light green bar) to 4/12/24 (darker green bar).

From a valuation perspective, Energy Transfer is the cheapest stock among its master limited partnership (MLP) midstream peers, trading at 8x on a forward enterprise value -to-adjusted EBITDA basis.

Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates. Another shortcoming of P/E is that it can’t be used to value a loss-making firm.

Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates. Another shortcoming of P/E is that it can’t be used to value a loss-making firm.

Screening Criteria Here are the parameters to screen for value stocks: EV-to-EBITDA 12 Months-Most Recent less than X-Industry Median: A lower EV-to-EBITDA ratio represents a cheaper valuation.