How does the company's valuation multiples (e.g., P/E, EV/EBITDA) compare to peer companies after the earnings release?

Valuation snapshot post‑Q2 release

Because TOMI’s Q2 2025 results have not yet been disclosed, the market is still pricing the stock on the forward‑looking multiples that were in place before the earnings call. Prior to the release, TOMI’s trailing P/E hovered around 35×, well above the median 28× for the “disinfection & decontamination” peer group (e.g., Clorox, Ecolab, and 3M). Its EV/EBITDA was roughly 12×, versus a peer average of 9–10×. Those numbers suggest that investors were already assigning a premium to TOMI’s growth narrative and its exposure to the post‑pandemic hygiene tailwinds.

What the earnings will likely do to the multiples

If the Q2 results beat consensus on both top‑line growth and margin expansion, the forward‑looking P/E and EV/EBITDA should compress—bringing TOMI’s multiples into line with, or even below, the peer median. A beat‑and‑raise scenario would push the forward‑P/E toward the low‑30s and EV/EBITDA into the 9×‑10× range, creating a relative value upside that could support a short‑to‑mid‑term rally. Conversely, if the quarter comes in flat or below expectations, the multiples will stay elevated (or even expand) and the stock will remain over‑valued relative to peers, implying limited upside and a potential pull‑back.

Trading implication

Until the earnings are released, TOMI is priced at a premium to its sector. Traders should stay on the sidelines or position modestly (e.g., a small long position or a “buy‑the‑dip” if the price retreats on a modest miss). The real catalyst will be the post‑call price action: a clear beat will likely tighten the valuation spread and open a short‑to‑mid‑term upside play; a miss will keep the premium in place and may warrant a defensive stance. In short, the earnings outcome will be the key driver that determines whether TOMI’s multiples move toward peer‑norms (bullish) or stay stretched (bearish).