EV/EBITDA - Ceta Research

Growth of $10,000 invested in EV/EBITDA sector-relative UK strategy vs FTSE 100 from 2000 to 2025, showing steady outperformance with lower drawdowns

UK stocks

EV/EBITDA Sector Discount on UK Stocks: Consistent, Not Spectacular

We backtested a sector-relative EV/EBITDA screen on 25 years of UK stock data (LSE). 9.77% CAGR vs 0.86% for the FTSE 100 (price return), zero cash periods, and a max drawdown of -31.12%. Note: FTSE 100 is price-only — true excess vs total-return FTSE is closer to +5-6% annually.

EV/EBITDA sector-relative strategy on TSX vs TSX Composite cumulative returns 2001-2025.

Canada stocks

EV/EBITDA Sector-Relative Value on Canadian Stocks: An Honest Assessment

We backtested sector-relative EV/EBITDA on 23 years of Canadian stocks (TSX). 7.16% CAGR vs 4.44% TSX Composite (+2.72% excess), but max drawdown -44.68% and Sharpe 0.233. The signal works when sector discounts have a catalyst. In Canada's resource-heavy TSX, they often don't.

EV/EBITDA sector-relative strategy on China A-shares (SHZ+SHH) vs SSE Composite cumulative returns 2000-2025.

China stocks

EV/EBITDA Sector-Relative Value on China A-Shares: When the Signal Can't Help You

We backtested sector-relative EV/EBITDA on 25 years of China A-share data (SHZ+SHH). 4.14% CAGR vs 3.54% SSE Composite, +0.60% excess. But Sharpe 0.038 and -64.15% max drawdown tell the real story. The signal barely beats a market that itself barely returns anything. Discounts in China follow...

EV/EBITDA sector-relative excess return vs local benchmark by exchange (2000-2025). Bar chart showing 11 markets positive, 2 negative, Norway/S.Africa insufficient data.

global stocks

EV/EBITDA Sector-Relative Value Across 14 Global Markets: Most Markets Beat Their Local Index

We ran sector-relative EV/EBITDA on 14 global exchanges (2000-2025), using each market's own local benchmark. 11 of 14 markets show positive excess return. The "West works, East doesn't" framing disappears with local benchmarks. India and Thailand are the main underperformers. US leads at...

EV/EBITDA sector-relative strategy on XETRA vs DAX cumulative returns 2000-2025.

Germany stocks

EV/EBITDA Sector-Relative Value on German Stocks: 8.97% CAGR Across All 25 Years

We backtested sector-relative EV/EBITDA on 25 years of German stocks (XETRA). 8.97% CAGR vs 4.45% DAX (total return), +4.53% excess. Zero cash periods. Win rate 48% but big alpha years (2000: +48% excess vs DAX) drive the long-run case. DAX is a total-return index — this is a clean comparison.

EV/EBITDA sector-relative strategy on HKSE vs Hang Seng cumulative returns 2004-2025. Strategy returned approximately 20% total over 21 invested years.

Hong Kong stocks

EV/EBITDA Sector-Relative Value on Hong Kong Stocks: Structural Discounts That Never Close

We backtested sector-relative EV/EBITDA on 21 years of Hong Kong stocks (HKSE). 0.87% CAGR vs 0.49% Hang Seng, +0.38% excess. Looks positive — but negative Sharpe ratio (-0.097) and -57.59% max drawdown tell the real story. Risk-adjusted returns are negative despite marginally beating the index.

Growth of investment in EV/EBITDA sector-relative India strategy vs Sensex from 2000 to 2025, showing high-volatility trajectory

India stocks

EV/EBITDA Sector Discount on Indian Stocks: Strong Returns, but the Sensex Did Better

We backtested a sector-relative EV/EBITDA screen on NSE stocks (2006-2025). 10.75% CAGR and beats SPY by a wide margin, but the Sensex returned 11.4%. Against the local benchmark, the strategy trails by 0.66% per year. Full data, SQL screen, and honest assessment.

EV/EBITDA sector-relative strategy on JPX vs Nikkei 225 cumulative returns 2006-2025. Strategy returned approximately 87% total.

Japan stocks

EV/EBITDA Sector-Relative Value on Japanese Stocks: Value That Needs Government Help

We backtested sector-relative EV/EBITDA on 19 years of Japanese stocks (JPX, 2006-2025). 3.38% CAGR vs 2.95% Nikkei 225, +0.43% excess. Japan is a deep value market, but the excess is thin and risk-adjusted returns are poor (Sharpe 0.177, MaxDD -49.76%). Discounts close on government policy, not...

EV/EBITDA sector-relative strategy on SIX Swiss Exchange vs SMI cumulative returns 2002-2025. Strategy returned 729.51% total.

Switzerland stocks

EV/EBITDA Sector-Relative Value on Swiss Stocks: 8.83% CAGR With 18% Down-Capture

We backtested sector-relative EV/EBITDA on 23 years of Swiss data (SIX). 8.83% CAGR vs 1.90% SMI (price return), 18.21% down capture, MaxDD -29.3%, Sharpe 0.421. Note: SMI excludes dividends — true excess vs total-return SMI is ~+3-4% annually. Still strong downside protection with a 15-stock...

EV/EBITDA

EV/EBITDA Sector Discount on US Stocks: 25 Years of Data

We tested a sector-relative EV/EBITDA screen on 25 years of US stock data. When a profitable company's EV/EBITDA falls 30%+ below its sector peers, it tends to mean-revert. 12.51% CAGR vs 7.64% for SPY, with 60.4% down capture and zero cash periods across 25 years.