AES Corp
NYSE:AES
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Bajaj Holdings and Investment Ltd
NSE:BAJAJHLDNG
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IN |
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 (15.6), the stock would be worth $12.14 (16% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 18.6 | $14.45 |
0%
|
| 3-Year Average | 15.6 | $12.14 |
-16%
|
| 5-Year Average | 14.6 | $11.37 |
-21%
|
| Industry Average | 21 | $16.36 |
+13%
|
| Country Average | 19.6 | $15.28 |
+6%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$35.4B
|
/ |
Jan 2026
$1.9B
|
= |
|
|
$35.4B
|
/ |
Dec 2026
$2.3B
|
= |
|
|
$35.4B
|
/ |
Dec 2027
$2.5B
|
= |
|
|
$35.4B
|
/ |
Dec 2028
$3.6B
|
= |
|
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 | ||||
|---|---|---|---|---|---|---|
| US |
|
AES Corp
NYSE:AES
|
10.3B USD | 18.6 | 11.4 | |
| US |
|
Vistra Corp
NYSE:VST
|
52.7B USD | 33.4 | 70 | |
| SA |
|
ACWA Power Co
SAU:2082
|
184.5B SAR | 80.2 | 99.6 | |
| IN |
|
Adani Power Ltd
NSE:ADANIPOWER
|
4.2T INR | 28.6 | 36.2 | |
| IN |
|
NTPC Ltd
NSE:NTPC
|
3.9T INR | 15.9 | 16.2 | |
| CN |
|
CGN Power Co Ltd
SZSE:003816
|
233.3B CNY | 22.2 | 23.9 | |
| TH |
G
|
Gulf Energy Development PCL
SET:GULF
|
870.2B THB | 55 | 40.7 | |
| CN |
|
China National Nuclear Power Co Ltd
SSE:601985
|
184.3B CNY | 20.1 | 21.4 | |
| DE |
|
Uniper SE
XETRA:UN0
|
17.5B EUR | 16.5 | 12.6 | |
| CN |
|
SDIC Power Holdings Co Ltd
SSE:600886
|
108.1B CNY | 12.9 | 16.5 | |
| US |
|
Talen Energy Corp
NASDAQ:TLN
|
15.5B USD | -746.8 | -71.6 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
AES Corp
Glance View
AES Corporation, founded in 1981, has journeyed from a modest start-up to a global leader in the energy sector. Originating with a vision to provide reliable electricity, AES has consistently innovated to meet the evolving needs of the energy market. The company operates in over 15 countries, with its portfolio spanning various continents, delivering energy solutions that range from traditional sources like coal and natural gas to burgeoning renewable resources like wind, solar, and battery storage. Such diversification positions AES to not only mitigate risks but also to tap into a broad spectrum of opportunities within the shifting global energy landscape. The company's business model is anchored in its ability to generate and distribute electricity while continuously investing in smart grid technologies and sustainable energy solutions. AES generates revenue through long-term contracts for electricity supply and direct sales to both industrial and residential customers. By incorporating innovative technologies, such as battery storage and digital platforms, the company enhances energy reliability and efficiency, thus creating additional revenue streams. AES's emphasis on sustainable practices and its strategic pivot towards renewables not only aligns it with global environmental goals but also bolsters its competitive edge in an industry increasingly mindful of environmental impacts.
