Investors often utilize the price-to-earnings (P/E) ratio for stock valuation, but the EV-to-EBITDA metric may provide a more accurate assessment of a company’s worth. Specifically, this ratio calculates a company’s enterprise value (EV) relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA), offering insights that account for debt and other factors that P/E ignores.
Notable stocks identified with strong EV-to-EBITDA ratios include First American Financial Corporation (FAF), expected earnings growth of 11.1% for 2026; AMN Healthcare Services, anticipated growth of 41.9%; Cenovus Energy (CVE), growth forecasted at 48.1%; PG&E Corporation (PCG) with 10% growth; and Safehold Inc. (SAFE), which has seen an upward earnings estimate revision of 1.8%. All companies demonstrate solid valuations based on this metric, positioning them as potentially attractive investment options.
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