SSE PLC
LSE:SSE
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Berkshire Hathaway Inc
NYSE:BRK.A
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Bank of America Corp
NYSE:BAC
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Mastercard Inc
NYSE:MA
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UnitedHealth Group Inc
NYSE:UNH
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Exxon Mobil Corp
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Pfizer Inc
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Nike Inc
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Visa Inc
NYSE:V
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Alibaba Group Holding Ltd
NYSE:BABA
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JPMorgan Chase & Co
NYSE:JPM
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Coca-Cola Co
NYSE:KO
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Verizon Communications Inc
NYSE:VZ
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Chevron Corp
NYSE:CVX
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Walt Disney Co
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PayPal Holdings Inc
NASDAQ:PYPL
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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 (11.7), the stock would be worth GBX1 646.42 (38% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 18.7 | GBX2 635 |
0%
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| 3-Year Average | 11.7 | GBX1 646.42 |
-38%
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| 5-Year Average | 11.7 | GBX1 645.59 |
-38%
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| Industry Average | 0.1 | GBX14.87 |
-99%
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| Country Average | 0 | GBX4.12 |
-100%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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GBX37.8B
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/ |
Oct 2025
£2B
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= |
|
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GBX37.8B
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/ |
Mar 2026
£2.4B
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= |
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GBX37.8B
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/ |
Mar 2027
£3B
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= |
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GBX37.8B
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/ |
Mar 2028
£3.6B
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= |
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GBX37.8B
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/ |
Mar 2029
£4.1B
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= |
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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 |
|
SSE PLC
LSE:SSE
|
29.2B GBP | 18.7 | 30 | |
| US |
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Nextera Energy Inc
NYSE:NEE
|
200.5B USD | 35.9 | 29 | |
| ES |
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Iberdrola SA
MAD:IBE
|
128.8B EUR | 16.3 | 20.6 | |
| IT |
|
Enel SpA
MIL:ENEL
|
99.2B EUR | 13.9 | 23.3 | |
| US |
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Constellation Energy Corp
NASDAQ:CEG
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106.1B USD | 38.5 | 42.2 | |
| US |
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Southern Co
NYSE:SO
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103.2B USD | 23.2 | 23.6 | |
| US |
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Duke Energy Corp
NYSE:DUK
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99.6B USD | 21.2 | 20.2 | |
| US |
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American Electric Power Company Inc
NASDAQ:AEP
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73.1B USD | 22 | 20.4 | |
| FR |
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Electricite de France SA
PAR:EDF
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46.6B EUR | -3.2 | -2.5 | |
| US |
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Entergy Corp
NYSE:ETR
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51.5B USD | 24.7 | 29.3 | |
| US |
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Xcel Energy Inc
NASDAQ:XEL
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49.6B USD | 29 | 24.4 |
Market Distribution
| Min | 0 |
| 30th Percentile | 0 |
| Median | 0 |
| 70th Percentile | 0.1 |
| Max | 1 015 |
Other Multiples
SSE PLC
Glance View
In the dynamic landscape of the energy sector, SSE PLC stands as a robust player primarily operating within the United Kingdom and Ireland. Established through decades of evolution, SSE has strategically positioned itself in both the generation and supply domains of electricity and gas. The company primarily generates revenue by producing and supplying electricity and gas to millions of homes and businesses. Crucially, SSE has invested significantly in renewable energy, thus broadening its portfolio and aligning with global trends towards sustainability. Wind farms, both onshore and offshore, form a considerable portion of its energy production, allowing SSE to tap into cleaner and increasingly cost-effective energy sources. While its roots are deeply embedded in traditional energy generation, a significant part of SSE's business model hinges on the regulated networks it owns and operates. These infrastructure assets ensure the transmission and distribution of electricity—an essential service that guarantees a stable revenue stream. Furthermore, SSE’s venture into energy-related services helps enhance its value proposition in a highly competitive market. Whether it's performing maintenance on energy installations or improving energy efficiency for large-scale facilities, these services provide additional revenue channels, reinforcing its commitment to an integrated approach of delivering reliable energy solutions while supporting the transition to a low-carbon economy. Through such multifaceted operations, SSE PLC continues to navigate and adapt amid a rapidly evolving industry landscape.