How does the fundraising affect the company's valuation multiples (P/E, EV/EBITDA) relative to peers?

Fund‑raising impact on valuation multiples

The $230 million equity raise expands Eve’s balance‑sheet cash on hand while simultaneously diluting existing shareholders. In a pure‑equity world the added cash will be added to net‑income (or to the “EBITDA” base once the capital is deployed) but the larger share count will push the P/E higher (i.e., a lower price‑to‑earnings ratio) if the market prices the new shares at the same level as before the raise. In practice, the market typically discounts the new issue to compensate for the dilution, so the post‑raise share price will fall enough to keep the pre‑raise P/E roughly unchanged. However, because Eve is still pre‑revenue or at a very early stage of earnings, the P/E is already a forward‑looking, highly speculative metric; the equity raise therefore tends to compress the P/E relative to cash‑rich peers that already have meaningful earnings, making Eve appear cheaper on a “price‑to‑future‑earnings” basis.

On the EV/EBITDA side the effect is more immediate. Adding $230 m of cash reduces net‑debt (EV = Market Cap + Debt – Cash). Assuming the cash is recorded as a non‑operating asset, the enterprise value falls while the EBITDA projection stays unchanged until the capital is spent on product development and sales. The net result is a lower EV/EBITDA multiple versus other UAM or aerospace peers that still carry higher net‑debt levels. This multiple compression signals a more attractive valuation for investors who focus on cash‑adjusted enterprise value, especially given Eve’s growth pipeline.

Trading implications

• Short‑term: Expect a modest sell‑off on the secondary‑market price as the new shares trade at a discount to the pre‑raise level (typical 5‑10 % discount for a $230 m raise). The dilution‑driven price drop will bring the P/E into line with, or slightly below, the median of UAM peers that are already generating earnings.
  
• Medium‑term: If Eve can efficiently convert the capital into commercial eVTOL deliveries, the cash‑enhanced balance sheet will support a re‑rating of EV/EBITDA as the company moves up the earnings curve, potentially out‑performing peers whose growth is more capital‑constrained.
  
• Actionable stance: Consider a buy‑on‑dip if the post‑raise price offers a >10 % discount to the pre‑raise implied valuation, with the upside coming from multiple expansion as the cash fuels revenue growth. Conversely, monitor dilution‑related earnings forecasts; if the forward‑looking earnings growth looks insufficient to offset the share‑count increase, the P/E compression could become a permanent discount.