Zacks.com featured highlights Affiliated Managers, Koninklijke Ahold Delhaize, Noah, Plains GP and Gibraltar Industries

For Immediate ReleaseChicago, IL – June 25, 2025 – The stocks in this week’s article are Affiliated Managers Group, Inc. AMG, Koninklijke Ahold Delhaize N.V. ADRNY, Noah Holdings Ltd. NOAH, Plains GP Holdings, L.P. PAGP and Gibraltar Industries, Inc. ROCK.5 Value Stocks with Impressive EV-to-EBITDA Ratios to Own NowThe price-to-earnings (P/E) multiple enjoys widespread popularity among investors seeking stocks trading at a bargain. In addition to being a widely used tool for screening stocks, P/E is a popular metric for working out the fair market value of a firm. However, even this straightforward, broadly used valuation metric has a few downsides.Although P/E enjoys huge popularity among value investors, a less-used and more complicated metric called EV-to-EBITDA is sometimes viewed as a better alternative. EV-to-EBITDA gives the true picture of a company’s valuation and earnings potential. It has a more comprehensive approach to valuation.Affiliated Managers Group, Inc., Koninklijke Ahold Delhaize N.V., Noah Holdings Ltd., Plains GP Holdings, L.P. and Gibraltar Industries, Inc. are some stocks with attractive EV-to-EBITDA ratios.Is EV-to-EBITDA a Better Substitute to P/E?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 that the P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value the 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. Moreover, it can be used to compare companies with different levels of debt.But EV-to-EBITDA has its limitations, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa) and 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 11 stocks that passed the screen:Affiliated Managers Group is a global asset manager with investments in high-quality, independent partner-owned firms or affiliates. This Zacks Rank #1 company has a Value Score of A.Affiliated Managers Group has an expected year-over-year earnings growth rate of 7.7% for 2025. The Zacks Consensus Estimate for AMG’s 2025 earnings has moved up 4.5% over the past 60 days.Ahold Delhaize is one of the world's largest food retail groups. This Zacks Rank #1 company has a Value Score of A.Ahold Delhaize has an expected earnings growth rate of 7.6% for 2025. The consensus estimate for ADRNY’s 2025 earnings has moved up 2.8% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.Noah Holdings is a leading wealth management service provider in China. NOAH, a Zacks Rank #2 stock, has a Value Score of A.Noah Holdings has an expected year-over-year earnings growth rate of 28% for 2025. The consensus estimate for NOAH’s 2025 earnings has been revised 4.6% upward over the past 60 days.Plains GP Holdings, through its subsidiaries, is involved in the transportation, storage, terminalling and marketing of crude oil and refined products. This Zacks Rank #2 stock has a Value Score of A.Plains GP Holdings has an expected year-over-year earnings growth rate of 157.7% for 2025. The consensus estimate for PAGP's 2025 earnings has been stable over the past 60 days.Gibraltar Industries manufactures and distributes products to the industrial and buildings market. This Zacks Rank #2 firm has a Value Score of B.Gibraltar Industries has an expected earnings growth rate of 15.8% for 2025. The Zacks Consensus Estimate for ROCK’s 2025 earnings has been revised 0.2% higher over the past 60 days.You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2543888/5-value-stocks-with-impressive-ev-to-ebitda-ratios-to-own-nowFollow us on Twitter:  https://www.twitter.com/zacksresearchJoin us on Facebook:  https://www.facebook.com/ZacksInvestmentResearchZacks 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 GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: pr@zacks.comVisit: 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. 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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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gibraltar Industries, Inc. (ROCK): Free Stock Analysis Report Affiliated Managers Group, Inc. (AMG): Free Stock Analysis Report Noah Holdings Ltd. (NOAH): Free Stock Analysis Report Plains Group Holdings, L.P. (PAGP): Free Stock Analysis Report Ahold NV (ADRNY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks