AO World PLC
LSE:AO
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (15.1), the stock would be worth GBX116.18 (29% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 11.7 | GBX90 |
0%
|
| 3-Year Average | 15.1 | GBX116.18 |
+29%
|
| 5-Year Average | 16 | GBX123.7 |
+37%
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| Industry Average | 0 | GBX0.21 |
-100%
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| Country Average | 0 | GBX0.23 |
-100%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
GBX545.8m
|
/ |
Oct 2025
£41.7m
|
= |
|
|
GBX545.8m
|
/ |
Mar 2026
£51.1m
|
= |
|
|
GBX545.8m
|
/ |
Mar 2027
£57.4m
|
= |
|
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GBX545.8m
|
/ |
Mar 2028
£65.2m
|
= |
|
|
GBX545.8m
|
/ |
Mar 2029
£67.5m
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| UK |
|
AO World PLC
LSE:AO
|
522m GBP | 11.7 | 43.9 | |
| US |
|
Amazon.com Inc
NASDAQ:AMZN
|
2.8T USD | 34.7 | 36.5 | |
| ZA |
N
|
Naspers Ltd
JSE:NPN
|
703.6B ZAR | 159.8 | 7.5 | |
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
324.1B USD | 24.4 | 24 | |
| CN |
|
PDD Holdings Inc
NASDAQ:PDD
|
139.2B USD | 5.7 | 9.6 | |
| NL |
|
Prosus NV
AEX:PRX
|
98.8B EUR | 490.5 | 8.6 | |
| UY |
|
MercadoLibre Inc
BMV:MELIN
|
1.6T MXN | 28.4 | 46.3 | |
| AR |
|
Mercadolibre Inc
NASDAQ:MELI
|
92.6B USD | 28.4 | 46.4 | |
| US |
D
|
DoorDash Inc
NASDAQ:DASH
|
76.8B USD | 101.4 | 82.2 | |
| CN |
|
Meituan
HKEX:3690
|
507.9B HKD | -12.8 | -19.3 | |
| CN |
|
JD.Com Inc
HKEX:9618
|
377.4B HKD | 48.8 | 16.9 |
Market Distribution
| Min | 0 |
| 30th Percentile | 0 |
| Median | 0 |
| 70th Percentile | 0.1 |
| Max | 1 015 |
Other Multiples
AO World PLC
Glance View
AO World Plc is a European online retailer company, which engages in the production, marketing and distribution of electrical products. The company is headquartered in Bolton, Lancashire. The company went IPO on 2014-02-26. The firm operates through two segments: online retailing of domestic appliances and ancillary services to customers in the United Kingdom and online retailing of domestic appliances and ancillary services to customers in Germany. In the United Kingdom, it sells major and small domestic appliances and a range of mobile phones, audio visual (AV), consumer electricals and laptops, delivering them through its in-house logistics business and selected third parties. The company also provides ancillary services, such as the installation of new products and recycling of old products, as well as offering product protection plans and customer finance. The company serves the business-to-business (B2B) market in the United Kingdom, providing electricals and installation services at scale. The firm's subsidiaries include AO Retail Limited, Expert Logistics Ltd, Worry Free Limited, and Appliances Online Ltd, among others.
