5 Value Stocks With Attractive EV-to-EBITDA Ratios to Scoop Up

What happened

An article discusses five stocks it calls value stocks with attractive EV-to-EBITDA ratios: Ultrapar Participacoes, Chatham Lodging Trust, Arcos Dorados Holdings, Occidental Petroleum and Kohl's. It says EV-to-EBITDA divides enterprise value, which adds debt and preferred stock to market value and subtracts cash, by earnings before interest, taxes, depreciation and amortization.

Confirmed

Global impact / market context

EV-to-EBITDA compares a company's total value, including borrowed money, with its cash earnings before interest and taxes. That lets investors judge whether a company looks cheap relative to its earnings power, which matters when debt levels differ and a simple price-to-earnings ratio could give a misleading picture.

Analyst inference

The article presents EV-to-EBITDA as a less-used but clearer alternative to the popular price-to-earnings ratio, which compares stock price with profit per share. It argues the broader metric gives a better view of valuation and earnings potential, and it names the five stocks as examples rather than confirmed bargains.

Analyst inference

What to watch

1. The article names Ultrapar Participacoes, Chatham Lodging Trust, Arcos Dorados Holdings, Occidental Petroleum and Kohl's as stocks it says have impressive EV-to-EBITDA ratios. Confirmed
2. Investors could compare each company's EV-to-EBITDA with rivals in the same industry, because debt and cash levels differ and a low ratio may reflect sector norms rather than a bargain. Proposed
3. Watch whether debt rises or cash falls at these companies, since either change raises enterprise value and makes the ratio look less attractive even if earnings stay flat. Analyst inference

Evidence

• zacks.com