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Shares of General Electric Rank the Highest in Terms of EV/EBITDA Ratio in the Industrial Conglomerates Industry (GE, RAVN, ROP, DHR, MMM)

By David Diaz

Below are the three companies in the Industrial Conglomerates 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.

General Electric ranks highest with a an EV/EBITDA ratio of 24.03. Raven Industries is next with a an EV/EBITDA ratio of 22.13. Roper Industries ranks third highest with a an EV/EBITDA ratio of 16.00.

Danaher follows with a an EV/EBITDA ratio of 15.12, and 3M rounds out the top five with a an EV/EBITDA ratio of 13.43.

SmarTrend recommended that its subscribers protect gains by selling shares of General Electric on September 9th, 2016 by issuing a Downtrend alert when the shares were trading at $30.47. Since that call, shares of General Electric have fallen 4.9%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio General Electric raven industries roper industries danaher 3M