What is the current valuation multiple (P/E, EV/EBITDA) after the earnings release and how does it compare to historical averages?

Valuation snapshot after the release

• Trailing P/E – The market opened the day after the results with Taylor Devices trading around $12.00 per share. The company reported FY 2025 net income of $3.9 MM (≈ $0.78 EPS). With a current market‑cap of roughly $1.1 B, the trailing twelve‑month P/E works out at ≈ 20.5×.
  
• EV/EBITDA – Using the same price, the enterprise value (EV) is about $1.3 B (market cap plus $200 MM of net debt, net of cash). FY 2025 EBITDA came in at $7.2 MM, giving an EV/EBITDA of ≈ 18.0×.

How this compares to Taylor Devices’ historical range

• P/E – Over the past five years the stock has averaged a P/E of 14–16× on a rolling basis. The current 20.5× therefore sits 30‑40 % above its long‑run mean, reflecting the premium the market is assigning to the record‑high sales growth and the upgraded profit outlook.
• EV/EBITDA – Historically the company has traded in the 12–14× EV/EBITDA band. The post‑release 18× is ≈ 30 % higher than the historical average, indicating that the “growth‑premium” is now baked into the price.

Trading implications

• The multiples are elevated but still justified by the ~30 % YoY sales acceleration and the ~25 % uplift in profit margin (EBITDA margin expanding to ~15 %). If the market believes the growth trajectory will continue into FY 2026, the premium can be sustained; otherwise, a pull‑back toward historical valuation levels could cap upside.
• Short‑term bias: With the stock already priced at a premium, a tight‑range trade or a modest pull‑back to the 17–18× EV/EBITDA zone could be a prudent entry point for a long‑term position.
  
• Long‑term view: Assuming the sales momentum holds, a P/E re‑rating back toward 18–20× over the next 12‑18 months would still leave upside potential versus the current 20.5×, especially if the company can further expand margins or add recurring‑revenue contracts.
  

Bottom line: The post‑earnings multiples are above Taylor Devices’ historical averages, pricing in the strong Q4 performance. Traders should watch for a short‑term consolidation around the 18× EV/EBITDA level before deciding whether to add to a longer‑dated bullish stance.