• Return to Headlines

Aerovironment has the Highest EV/EBITDA Ratio in the Aerospace & Defense Industry (AVAV, LMIA, TASR, LLL, AIR)

By James Quinn

Below are the three companies in the Aerospace & Defense 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.

Aerovironment ranks highest with a an EV/EBITDA ratio of 62.56. LMI Aerospace is next with a an EV/EBITDA ratio of 29.08. Taser International ranks third highest with a an EV/EBITDA ratio of 25.14.

L-3 Communications follows with a an EV/EBITDA ratio of 21.10, and AAR rounds out the top five with a an EV/EBITDA ratio of 20.57.

SmarTrend recommended that subscribers consider buying shares of AAR on February 25th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $21.37. Since that recommendation, shares of AAR have risen 9.2%. We continue to monitor AAR for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio AeroVironment lmi aerospace TASER International l-3 communications aar