Shares of supply chain software company E2open Parent Holdings (NYSE: ETWO) soared higher on Tuesday after it reported financial results for its fiscal fourth quarter of 2024. The S&P 500 was down a sharp 1.1%. In contrast, E2open stock was up a whopping 16% as of 3 p.m. ET.

E2open offers cloud-based software as a service (SaaS) for managing supply chains, which would seem to be an in-demand product given the broad supply chain volatility in recent years. However, the company's total Q4 revenue of $159 million was down almost 5% year over year.

Investors may have been optimistic nevertheless because E2open earned adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $220 million in its fiscal 2024. Considering it has an enterprise value (EV) of about $2.3 billion as of this writing, it trades at a downright cheap EV-to-EBITDA ratio of about 10.

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Source Fool.com