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Pool Corp has the Highest EV/EBITDA Ratio in the Distributors Industry (POOL, CORE, GPC, LKQ, WEYS)

By David Diaz

Below are the three companies in the Distributors 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.

Pool Corp ranks highest with a an EV/EBITDA ratio of 20.72. Following is Core-Mark Holdin with a an EV/EBITDA ratio of 14.60. Genuine Parts Co ranks third highest with a an EV/EBITDA ratio of 13.84.

Lkq Corp follows with a an EV/EBITDA ratio of 11.66, and Weyco Group rounds out the top five with a an EV/EBITDA ratio of 10.91.

SmarTrend recommended that its subscribers protect gains by selling shares of Lkq Corp on March 5th, 2018 by issuing a Downtrend alert when the shares were trading at $38.75. Since that call, shares of Lkq Corp have fallen 21.0%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio pool corp core-mark holdin genuine parts co lkq corp weyco group