For Immediate Release
Chicago, IL – February 10, 2026 – Stocks in this week’s article are DNOW Inc. DNOW, FirstSun Capital Bancorp FSUN, Safehold Inc. SAFE, Amkor Technology, Inc. AMKR and CEMEX, S.A.B. de C.V. CX.
5 Value Stocks with Alluring EV-to-EBITDA Ratios to Scoop Up
The price-to-earnings (P/E) ratio is widely regarded as a yardstick for assessing a stock’s fair value. It is commonly used by investors to identify attractively priced stocks. However, despite its popularity, this valuation metric has notable shortcomings.
While P/E remains the most widely used equity valuation ratio, a more comprehensive metric called EV-to-EBITDA often provides a more accurate assessment of a company’s value. Frequently considered a better alternative to P/E, this ratio delivers a clearer view of a firm’s valuation and earnings-generating potential.
DNOW Inc., FirstSun Capital Bancorp, Safehold Inc., Amkor Technology, Inc. and CEMEX, S.A.B. de C.V. are some stocks with attractive EV-to-EBITDA ratios.
EV-to-EBITDA a Better Approach: Here’s Why
EV-to-EBITDA is essentially 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. EBITDA, the other component of the multiple, gives a better idea of a company’s profitability as it removes the impact of non-cash expenses like depreciation and amortization that reduce 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.
Another shortcoming of P/E is that it can’t be used to value a loss-making firm. A company’s earnings are also subject to accounting estimates and management manipulation. On the other hand, EV-to-EBITDA is difficult to manipulate and can also be used to value loss-making but EBITDA-positive companies. 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 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.
A strategy solely based on EV-to-EBITDA might not yield the desired results. However, you can club it with the other major ratios in your stock-investing toolbox, such as price-to-book (P/B), P/E and price-to-sales (P/S) to screen value stocks.
Here are our five picks out of the 15 stocks that passed the screen:
DNOW is a leading energy and industrial solutions provider with a global network of distribution and engineering locations. This Zacks Rank #1 stock has a Value Score of A.
DNOW has an expected earnings growth rate of 20.5% for 2026. The Zacks Consensus Estimate for DNOW’s 2026 earnings has been revised 8.7% upward over the past 60 days.
FirstSun Capital Bancorp is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank. This Zacks Rank #1 stock has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
FirstSun Capital has an expected year-over-year earnings growth rate of 13.8% for 2026. The Zacks Consensus Estimate for FSUN's 2026 earnings has been revised 9.8% upward over the past 60 days.
Safehold is a real estate investment trust, which helps owners of high-quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. This Zacks Rank #1 stock has a Value Score of B.
Safehold has an expected year-over-year earnings growth rate of 7.1% for 2026. The consensus estimate for SAFE’s 2026 earnings has moved up 4.7% over over the past 60 days.
Amkor Technology is a leading provider of semiconductor packaging and test services. This Zacks Rank #1 stock has a Value Score of B.
Amkor Technology has an expected year-over-year earnings growth rate of 27.2% for 2026. The consensus estimate for AMKR’s 2026 earnings has moved up 4.6% over over the past 60 days.
CEMEX is a global construction materials company. This Zacks Rank #2 stock has a Value Score of B.
CEMEX has an expected year-over-year earnings growth rate of 218.5% for 2026. The Zacks Consensus Estimate for CX's 2026 earnings has been revised 6.2% upward over the last 60 days.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2840982/5-value-stocks-with-alluring-ev-to-ebitda-ratios-to-scoop-up
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FirstSun Capital Bancorp (FSUN) : Free Stock Analysis Report
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