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Top 5 Companies in the Building Products Industry With the Highest EV/EBITDA Ratio (JCI, AAON, LII, AOS, ROCK)

By David Diaz

Below are the three companies in the Building Products 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.

Johnson Controls ranks highest with a an EV/EBITDA ratio of 34.01. Following is AAON with a an EV/EBITDA ratio of 20.55. Lennox International ranks third highest with a an EV/EBITDA ratio of 18.53.

AO Smith follows with a an EV/EBITDA ratio of 18.14, and Gibraltar Industries rounds out the top five with a an EV/EBITDA ratio of 12.71.

SmarTrend recommended that its subscribers protect gains by selling shares of Gibraltar Industries on December 15th, 2016 by issuing a Downtrend alert when the shares were trading at $42.50. Since that call, shares of Gibraltar Industries have fallen 18.1%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio Johnson Controls Lennox International ao smith gibraltar industries