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5 Value Stocks with Incredibly Low EV-to-EBITDA Ratios to Snap Up
Investors generally have a fixation on the price-to-earnings (P/E) strategy while seeking stocks trading at attractive prices. This straightforward, easy-to-calculate ratio is the most preferred among the valuation metrics in the investment toolkit for working out the fair market value of a stock. But even this ubiquitously used valuation metric is not without its pitfalls.
While the popularity of P/E stems from its simplicity, a more complicated and less-used metric called EV-to-EBITDA is often viewed as a better option, as it offers a clearer picture of a company’s valuation and earnings potential. EV-to-EBITDA has a more complete approach to valuation as it determines a firm’s total value. In contrast, P/E only considers a firm’s equity portion.
Kohl's Corp., Lifetime Brands, Inc., Mativ Holdings, Inc., Ultrapar Participacoes S.A. and Chatham Lodging Trust are some stocks with impressive EV-to-EBITDA ratios.
EV-to-EBITDA Is a Better Alternative, Here’s Why
Also referred to as the enterprise multiple, EV-to-EBITDA is the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock, minus cash and cash equivalents. In essence, it is the entire value of a company. EBITDA, the other element, gives a clearer picture of a company’s profitability by removing the impact of non-cash expenses like depreciation and amortization that dampen net earnings. It is also often used as a proxy for cash flows.
Just like P/E, the lower the EV-to-EBITDA ratio, the more attractive it is. A low EV-to-EBITDA ratio could signal that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company’s balance sheet, which the P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.
P/E can’t be used to value a loss-making firm. A firm’s earnings are also subject to accounting estimates and management manipulation. In contrast, EV-to-EBITDA is harder to manipulate and can be used to value companies that have negative net earnings but are positive on the EBITDA front. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can also be used to compare companies with different levels of debt.
But EV-to-EBITDA has its shortcomings, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa). It is usually not appropriate when comparing stocks in different industries, given their diverse capital requirements.
As such, a strategy entirely based on EV-to-EBITDA might not yield the desired results. But you can combine it with other key ratios such as price-to-book (P/B), P/E and price-to-sales (P/S) to screen true value stocks.
Here are our five picks out of the 14 stocks that passed the screen:
Kohl’s is a U.S.-based department store retailer, offering moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. This Zacks Rank #1 stock has a Value Score of A.
Kohl’s has an expected year-over-year earnings growth rate of 17.3% for the current fiscal year. The Zacks Consensus Estimate for KSS’s current fiscal-year earnings has been revised 39.7% higher over the last 60 days.
Lifetime Brands has an expected year-over-year earnings growth rate of 156.8% for 2026. The consensus estimate for LCUT’s 2026 earnings has moved up 184.9% over the past 60 days.
Mativ Holdings is a specialty materials company, offering a wide range of critical components and engineered solutions. This Zacks Rank #2 stock has a Value Score of A.
Mativ Holdings has an expected year-over-year earnings growth rate of 38.6% for the current year. The consensus estimate for MATV’s current-year earnings has been revised 14.1% upward over the past 60 days.
Ultrapar Participacoes is one of the largest distributors of liquefied petroleum gas in Brazil and a leading producer of petrochemicals and chemicals. This Zacks Rank #2 company has a Value Score of A.
Ultrapar Participacoes has an expected year-over-year earnings growth rate of 190% for 2026. The Zacks Consensus Estimate for UGP's 2026 earnings has been revised 21.7% upward over the past 60 days.
Chatham Lodging Trust is a lodging real estate investment trust that invests in premium-branded upscale extended-stay and select-service hotels. This Zacks Rank #2 company has a Value Score of A.
Chatham Lodging Trust has an expected year-over-year earnings growth rate of 32.4% for 2026. The consensus estimate for CLDT’s 2026 earnings has moved up 4.7% over the past 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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Zacks.com featured highlights Kohl's, Lifetime Brands, Mativ, Ultrapar and Chatham Lodging
For Immediate Release
Chicago, IL – September 18, 2026 – Stocks in this week’s Kohl's Corp. (KSS - Free Report) , Lifetime Brands, Inc. (LCUT - Free Report) , Mativ Holdings, Inc. (MATV - Free Report) , Ultrapar Participacoes S.A. (UGP - Free Report) and Chatham Lodging Trust (CLDT - Free Report)
5 Value Stocks with Incredibly Low EV-to-EBITDA Ratios to Snap Up
Investors generally have a fixation on the price-to-earnings (P/E) strategy while seeking stocks trading at attractive prices. This straightforward, easy-to-calculate ratio is the most preferred among the valuation metrics in the investment toolkit for working out the fair market value of a stock. But even this ubiquitously used valuation metric is not without its pitfalls.
While the popularity of P/E stems from its simplicity, a more complicated and less-used metric called EV-to-EBITDA is often viewed as a better option, as it offers a clearer picture of a company’s valuation and earnings potential. EV-to-EBITDA has a more complete approach to valuation as it determines a firm’s total value. In contrast, P/E only considers a firm’s equity portion.
Kohl's Corp., Lifetime Brands, Inc., Mativ Holdings, Inc., Ultrapar Participacoes S.A. and Chatham Lodging Trust are some stocks with impressive EV-to-EBITDA ratios.
EV-to-EBITDA Is a Better Alternative, Here’s Why
Also referred to as the enterprise multiple, EV-to-EBITDA is the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock, minus cash and cash equivalents. In essence, it is the entire value of a company. EBITDA, the other element, gives a clearer picture of a company’s profitability by removing the impact of non-cash expenses like depreciation and amortization that dampen net earnings. It is also often used as a proxy for cash flows.
Just like P/E, the lower the EV-to-EBITDA ratio, the more attractive it is. A low EV-to-EBITDA ratio could signal that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company’s balance sheet, which the P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.
P/E can’t be used to value a loss-making firm. A firm’s earnings are also subject to accounting estimates and management manipulation. In contrast, EV-to-EBITDA is harder to manipulate and can be used to value companies that have negative net earnings but are positive on the EBITDA front. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can also be used to compare companies with different levels of debt.
But EV-to-EBITDA has its shortcomings, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa). It is usually not appropriate when comparing stocks in different industries, given their diverse capital requirements.
As such, a strategy entirely based on EV-to-EBITDA might not yield the desired results. But you can combine it with other key ratios such as price-to-book (P/B), P/E and price-to-sales (P/S) to screen true value stocks.
Here are our five picks out of the 14 stocks that passed the screen:
Kohl’s is a U.S.-based department store retailer, offering moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. This Zacks Rank #1 stock has a Value Score of A.
Kohl’s has an expected year-over-year earnings growth rate of 17.3% for the current fiscal year. The Zacks Consensus Estimate for KSS’s current fiscal-year earnings has been revised 39.7% higher over the last 60 days.
Lifetime Brands is a leading global provider of branded kitchenware, tableware and other products. This Zacks Rank #2 stock has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lifetime Brands has an expected year-over-year earnings growth rate of 156.8% for 2026. The consensus estimate for LCUT’s 2026 earnings has moved up 184.9% over the past 60 days.
Mativ Holdings is a specialty materials company, offering a wide range of critical components and engineered solutions. This Zacks Rank #2 stock has a Value Score of A.
Mativ Holdings has an expected year-over-year earnings growth rate of 38.6% for the current year. The consensus estimate for MATV’s current-year earnings has been revised 14.1% upward over the past 60 days.
Ultrapar Participacoes is one of the largest distributors of liquefied petroleum gas in Brazil and a leading producer of petrochemicals and chemicals. This Zacks Rank #2 company has a Value Score of A.
Ultrapar Participacoes has an expected year-over-year earnings growth rate of 190% for 2026. The Zacks Consensus Estimate for UGP's 2026 earnings has been revised 21.7% upward over the past 60 days.
Chatham Lodging Trust is a lodging real estate investment trust that invests in premium-branded upscale extended-stay and select-service hotels. This Zacks Rank #2 company has a Value Score of A.
Chatham Lodging Trust has an expected year-over-year earnings growth rate of 32.4% for 2026. The consensus estimate for CLDT’s 2026 earnings has moved up 4.7% over the past 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2991362/5-value-stocks-with-incredibly-low-ev-to-ebitda-ratios-to-snap-up
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
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Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.