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Highest EV/EBITDA Ratio in the Automotive Retail Industry Detected in Shares of Carmax (KMX, ORLY, MNRO, PBY, AZO)

By James Quinn

Below are the three companies in the Automotive Retail industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Carmax ranks highest with a an EV/EBITDA ratio of 17.76. O'Reilly Automotive is next with a an EV/EBITDA ratio of 16.88. Monro Muffler ranks third highest with a an EV/EBITDA ratio of 14.79.

PEP Boys follows with a an EV/EBITDA ratio of 14.15, and AutoZone rounds out the top five with a an EV/EBITDA ratio of 12.93.

SmarTrend recommended that subscribers consider buying shares of PEP Boys on August 31st, 2015 as our technology indicated a new Uptrend was in progress when shares hit $11.93. Since that recommendation, shares of PEP Boys have risen 55.1%. We continue to monitor PEP Boys for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio CarMax o'reilly automotive monro muffler pep boys AutoZone