Reece Ltd
ASX:REH
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (20.6), the stock would be worth AU$13.68 (0% downside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 20.6 | AU$13.69 |
0%
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| 3-Year Average | 20.6 | AU$13.68 |
0%
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| 5-Year Average | 21.9 | AU$14.55 |
+6%
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| Industry Average | 18.3 | AU$12.16 |
-11%
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| Country Average | 16.5 | AU$10.96 |
-20%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
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AU$10.4B
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/ |
Jan 2026
AU$505.6m
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= |
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AU$10.4B
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/ |
Jun 2026
AU$912.2m
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= |
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AU$10.4B
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/ |
Jun 2027
AU$990.2m
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= |
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AU$10.4B
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/ |
Jun 2028
AU$1.1B
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= |
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AU$10.4B
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/ |
Jun 2029
AU$1.2B
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= |
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AU$10.4B
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/ |
Jun 2030
AU$1.3B
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= |
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AU$10.4B
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/ |
Jun 2031
AU$1.4B
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= |
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AU$10.4B
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/ |
Jun 2032
AU$1.4B
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= |
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AU$10.4B
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/ |
Jun 2033
AU$1.5B
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= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| AU |
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Reece Ltd
ASX:REH
|
8.4B AUD | 20.6 | 28.9 | |
| JP |
|
Mitsubishi Corp
TSE:8058
|
18.3T JPY | 26.7 | 25.1 | |
| JP |
|
Mitsui & Co Ltd
TSE:8031
|
16.5T JPY | 23.8 | 19.2 | |
| JP |
|
Itochu Corp
TSE:8001
|
15.4T JPY | 16 | 16.6 | |
| US |
|
United Rentals Inc
NYSE:URI
|
61.5B USD | 10.4 | 24.7 | |
| JP |
|
Marubeni Corp
TSE:8002
|
9.7T JPY | 23.3 | 19.1 | |
| US |
|
W W Grainger Inc
NYSE:GWW
|
54.4B USD | 20.3 | 31.9 | |
| US |
W
|
WW Grainger Inc
XMUN:GWW
|
47B EUR | 20.6 | 32.2 | |
| US |
|
Fastenal Co
NASDAQ:FAST
|
51.3B USD | 27.1 | 39.5 | |
| US |
|
Ferguson Enterprises Inc
NYSE:FERG
|
51.4B USD | 43.6 | 65.4 | |
| JP |
|
Sumitomo Corp
TSE:8053
|
6.9T JPY | 14.7 | 12.5 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10 |
| Median | 16.5 |
| 70th Percentile | 24.5 |
| Max | 6 797.5 |
Other Multiples
Reece Ltd
Glance View
Reece Ltd, a stalwart in the Australian plumbing and bathroom supplies space, has carved out its niche through an enduring commitment to quality and a vast network of supply channels. Founded in 1920 by Harold Joseph Reece, the company has meticulously grown from a small hardware store in Caulfield, Victoria, into a robust enterprise with a commanding presence across Australia and beyond. This growth story is deeply rooted in its resilient business model that hinges on tapping into the construction and home renovation boom by providing essential plumbing and bathroom products. By elegantly interweaving innovation with tradition, Reece has embraced digital transformation in its operations, offering an enriched online shopping experience that complements its extensive physical footprint. At the heart of Reece's success is its ability to anticipate and adapt to industry trends while maintaining strong relationships with tradespeople, builders, and DIY enthusiasts. It garners revenue by distributing high-quality local and international brands through its various channels, seamlessly integrating product sales with value-added services like expert advice and design consultation. Moreover, strategic acquisitions have bolstered its competitive edge, facilitating geographical expansion and enhancing product diversity. This multifaceted approach not only ensures a steady revenue flow but also cements Reece’s position as a preferred partner in the plumbing and construction industry, thriving amidst fluctuating economic cycles.
