valuation multiples by industry 2021

Multiples for this sector range depending on the type of service provided, but typically are in therange of 5-12x. Valuation multiples are financial measurement tools that evaluate one financial metric as a ratio of another, in order to make different companies more comparable. Differences in valuation multiple ranges and dispersion are caused by many factors, such as the number of active buyers, the efficiency of the transaction market and the homogeneity of enterprise . More cautious venture capital (VC) funding has already led to several early-stage companies facing down rounds, orin situations where they are unable to secure additional financinglooking for a buyer. (See Exhibit 2.) 2021 middle market M&A activity soared to record heights in a year characterized by feverish buyer appetite, expedited deal timelines, and seller-friendly valuations. The average PEG ratio of 1.6 for the financial sector in 2021 is lower than the S&P average (2.2) and could indicate undervaluation today, especially as these stocks tend to look cheap on traditional valuation multiples as well. Earnings per Share). 2021 U.S. Valuation Multiples by Industry To download eVal's historic Valuation Multiples by Industry reports, please click on the relevant download link below. Save . Multiples for tourism businesses can be in therange of 6-12x. EV to EBIT and EBITDA (earnings before interest, taxes, depreciation, and amortization) 55 East 52nd Street 17 Fl New York NY 10055 +1 212 593 1000 Subscribe to Kroll Reports Solutions Trending Topics Valuation Research Corporation (VRC) is a full-service, independent, global valuation firm focusing exclusively on valuations and advisory services. This compares with double-digit declines in deal volumes and values in the US, China, the UK and many other countries. The average P/E ratio for tech stocks (information technology sector) of 42.4 in 2021 continues to outpace other sectors, with only the real estate sector seeing a higher average P/E in 2021 of 56.4. For others, demonstrating a business rationale and a case for ESG may help secure financingor potentially be a source of value creation. The spread in valuation between deals completed in the $50-$250 million TEV range compared to deals in the $10-$50 million TEV range was 2.0x through Q1 2021, which is in line with historical averages. This is indicative of a broader shift by investors to find opportunities and growth in other markets, as we detail further below: Asia Pacific: Deal volumes and values declined by 23% and 33%, respectively, between 2021 and 2022, with the greatest declines in China, where deal volumes and values decreased by 46% and 35%, respectively. Thank you! The average P/E ratio for the energy sector in 2021 was 10.9, which is on the lower end of its historical average (on median terms), likely due to the great inflow of earnings for those businesses following a rebound from the pandemic in demand for oil and gas. Apply a multiplication factor based on industry sales or comparable companies in the sector. can be obtained by clicking here. Sale multiples range between 5-10x. This indicates that the average growth for all stocks in the sector was negative over the last two years. The average P/B ratio for tech stocks (information technology sector) of 8.0 in 2021 is the highest out of all stocks, and is due in large part to the higher returns on capital and higher margins that many businesses in this industry are able to achieve. Will it accelerate digitalisation, increase pressure on competitors or benefit the long-term positioning of the company? The following analysis focuses on private, mid-market technology, media, and telecom (TMT) company valuation trends, as guided by North American publicly traded companies with an enterprise value of less than $1 billion. As valuations have risen faster than financial performance, multiples increased sharply in the LTM. As investors pull back from riskier investments and reassess valuations, we expect to see some distress in early-stage companies that may struggle to secure further rounds of financing. This may present some interesting acquisition opportunities for corporate players and PEs. This data was pulled from quickfs.nets premium plugin which pulls from publicly available company filings, and adjusted to ignore high and low numbers that would greatly skew the average, with any values above 250 or below -250 being deleted. Business Valuation with the EBITDA Multiple. . We have based our commentary on M&A trends on data provided by industry-recognised sources. The valuation multiples of all publicly traded software companies that have available data is as follows. hbspt.forms.create({ This publication includes data derived from data provided under license by Dealogic. When combined with edgy investors still digesting 2022s steep decline in global stock market valuations, the war in Ukraine, other geopolitical tensions, supply chain disruptions and tightening regulatory scrutiny, its no wonder executives have been pushed back on their heels. As arguably the hardest hit sector by the pandemic, tourism operators have been forced to pivot their offerings to domestic tourists. The average P/B ratio for the S&P 500 in 2021 was 4.7. This varies depending on: Global trends affecting healthcare include COVID-19, ageing populations, increasing life expectancy, technology proliferation and private sector involvement. We will examine some of the factors that may be impacting the TEV of the publicly-traded full-service restaurant groups. For some sectors, an EBITDA multiple is not the most commonly utilised metric. To learn how Nash Advisory can assist you with the sale of your Professional Services business, please read our case study on Point Advisory. Combined with a dormant market for initial public offerings (IPOs), this will likely create opportunitiesparticularly for corporate playersto invest in, or acquire, companies with innovative business models and interesting technology, digital assets or other capabilities at a more reasonable valuation than previously would have been possible. This post displays the mostly commonly used valuation multiples, showing average multiples of the S&P 500 by both sector and industry for Fiscal Year 2021 and 2020, as well as the 19 or 20-year historical averages (2002 - 2021). In addition, large diversified industrial companies are continuing to acquire to increase overall capability and strengthen their growth potential. There are a several ways to determine the value of a business. Innovations created by these investments and a societal shift toward low carbon and renewable energy sources are expected to lead to further acquisition activity. Companies with cash on hand and growth ambitions will be well placed in this market. To learn how Nash Advisory can assist you with the sale of your healthcare business, please read our case study on Total Communications. The average P/FCF ratio for tech stocks (information technology sector) of 35.2 in 2021 outpaces the other sectors except for industrials, which saw a higher average P/FCF in 2021 of 37.0. noted during the first three quarters of 2022 and outlined since the second part of 2021, was interrupted in . Sustainability-linked loans and green, social and transition bonds may bring more favourable financial terms, whichalong with government incentives and tax credits directed towards renewables and other green-energy initiativesmay improve a companys bottom line. Valuations in the recruiting and staffing industry have risen precipitously from the end of 2020 to the end of 2021. The deal includes a $600 million upfront payment but could reach as high as $875 million, depending on RxSS financial performance through 2025. Valuation trends in the SaaS industry There are several datasets we can use to examine how SaaS has grown in the past, and how it continues to grow as we move through 2021. Doing full valuation research to find a realistic and credible day-of-exit valuation can be challenging and time-consuming, the quickest and simplest approach is to research the EBITDA Multiple benchmark for your sector. The link for a screenshot of the entire 19-year dataset from Fiscal Years 2003 2021: Average P/S Ratio of the S&P 500 by Industry. This is a common valuation methodology when valuing micro and small to medium sized businesses. If CEOs dont react, they could miss attractive opportunities and potentially open the door to shareholder activism, a trend which has been on the rise. on which companies are included in each industry Industry Name: Number of firms: Price/Sales: Net Margin: EV/Sales: Pre-tax Operating Margin: Advertising: 58: 1.49: 3.79%: 1.96: 11.11%: Aerospace/Defense: 77: 2 . Reliability of revenue and earnings (recurring or once-off). As of November 15, the average multiple across health services sub-sectors was 14.4x, down from 15.9x as of December 31, 2021 and 14.9x as of December 31, 2020. Dashboards & KPIs by BrightGauge KPI dashboards and reporting for real-time business insights. Capstone Capital Markets LLC provides financial advisory services and does not accept deposits, extend credit or engage in trading activity. John Bintz Private equity (PE) deal valuations by EV/EBITDA are increasingly rich and are hitting higher double-digit figures 2021 is expected to be another home run year for PE, with 20% of buyouts estimated to be priced above 20x EV/EBITDA The Ballooning Valuations In Private Equity Deals Private equity is getting increasingly expensive. As a result of the workforces direct impact on business performance, all deals today cannot underestimate the people element. Similarly, the average revenue multiple dropped from .67 to .65 and average cash flow multiple dropped from 2.55 to 2.53. But usually there are two major ways how the "problem" of overvalued stocks can be solved. We believe this will act as a catalyst for greater stability and certainty leading to an upswing in M&A, notably among private equity. Given the economic tailwinds supporting long term growth in the sector, interest has come from local and international buyers, including strategic and financial buyers. The multiples are calculated using the 500 largest public U.S. companies. The high levels of M&A activity from 2021 continued into the early part of 2022, but as headwinds continued to grow, each successive quarter reported a decline in deal activity over the prior one. Apply a multiplication factor based on industry sales or comparable companies in the sector. This pattern appeared consistent with the normal levels seen from 2016 to 2019 of 4.0x to 4.5x EBITDA. A valuation expert will derive an implied value of a lumber wholesale company. - 2023 PwC. India has emerged as an increasingly attractive destination for investment, overtaking Japan and South Korea in deal values to rank second in the region behind China. As business leaders seek to surmount the varying challenges, M&Aand particularly portfolio optimisationwill be a key tool to help them reposition their businesses, bolster growth and achieve sustained outcomes over the long term. This has significantly changed the dynamic of the overall M&A market. And as the stock is trading for almost the same price as during my last article, it might seem like the issue is not yet resolved. This is dependent on a number of factors: Large organisations need to consider how they can remain relevant as consumer and business purchasing trends change because of the pandemic. India, for example, was a notable outlier in 2022, with the economy continuing to grow, year-over-year M&A activity increasing 16%, and deal values increasing 35%to an all-time high. Deal values were particularly hard-hit, and the number of US megadealstransactions with a value in excess of US$5bnalmost halved between 2021 and 2022 from 81 to 42, respectively. This data was pulled from quickfs.nets premium plugin which pulls from publicly available company filings, and adjusted to ignore high and low numbers that would greatly skew the average, with any values above 20 or below -20 being deleted. The average P/S ratio for the S&P 500 in 2021 was 4.6. Every quarter, PwC's Global IPO Watch provides a global overview and analysis of Initial Public Offerings (IPOs) and follow-on offerings. The average PEG ratio for tech stocks (information technology sector) of 2.8 in 2021 is surprisingly not the highest out of all the S&P 500 sectors, and trails Industrials, Consumer Staples, and Health Care. Specifically, values and volumes referenced in this publication are based on officially announced transactions, excluding rumoured and withdrawn transactions, as provided by Refinitiv as of 31 December 2022 and as accessed on 2 January 2023. The average P/S ratio for the energy sector in 2021 was 1.7, which was lower than its 2020 values and may represent the large selloff that occurred with those stocks during the steep drop in demand in the pandemic. The impact of having or not having contracts on valuation is unique to each business. For instance, Financial Services tends to trade on Price / Earnings (PE) ratios, while Transport trades on Earnings before Interest and Tax (EBIT) multiples. These challenging conditions create opportunities for buyers to achieve better returns and even outsize growth. This is largely dependent on: As domestic tourism drives the industry, private equity firms and global tourism operators are continuing to grow via acquisitions. To learn how Nash Advisory can assist you with the sale of your tourism business, please read our case study on Lake Argyle Resort. From payments to insurtech to blockchain and cybersecurity, FinTech encompasses many ever-evolving segments creating countless opportunities for growth. Recently, a number of large corporates have announced cost-reduction programs including layoffs amid recession fears, but there have also been announcements in new investment areas. Global Consumer Insights Pulse Survey - June 2022, Ukraine: Tax, Legal and People considerations. Discover EBITDA and revenue purchase multiples across 11 industries . HAS BEEN ACQUIRED UNDER CHAPTER 11 363 BY. Heres a breakdown of the average PEG ratio of the S&P 500 by industry: The link for a screenshot of the entire 19-year dataset from Fiscal Years 2003 2021: Average PEG Ratio of the S&P 500 by Industry. During 2022, there were 85 SPAC IPOs which together raised approximately US$12bn in proceeds, a sharp drop from the more than 600 SPAC IPOs which raised more than US$144bn in 2021. I am grateful for the opportunities I've received during my academic . The average P/E ratio for the S&P 500 in 2021 was 23.5. Charles Sapnas. If you are looking to value your business, you've come to the right place. Market participants throughout 2021 shared that valuations had far surpassed prior year levels, owing to a return of buyers to the table and sellers that had recouped substantial COVID-induced losses. Consider how a deal will be perceived by stakeholderswill it bring new offerings, new markets or new customers? The typical valuation multiple increased by 21% from 2007 to 2014 but then jumped by 71% from 2014 to 2021. Valuation = 1,250 x 3 = $3.8M. As CEOs reassess their portfolio against their core strategy, one key question they must address is the extent to which they should continue to invest in non-core or lower-growth areas. M&A in China has slowed domestically in response to the countrys pandemic-related challenges and weakening demand for exports. Explore key findings from PwCs Workforce Hopes and Fears 2022 survey of 52,000+ workers across 44 countries and territories worldwide. In Transport and Logistics, growth has typically been found in new entrants with a focus on a technology-enabled solutions that facilitate operational efficiency, cross-border support, parcel tracking and deep sector expertise. Nearly 40% of CEOs dont think their companies will be economically viable a decade from now if they dont transform[2]. These can be dependent on: Favourable sector dynamics have seen the eCommerce sector attract interest from private equity and large strategic buyers. Deal volumes and values across EMEA declined by 12% and 37%, respectively, between 2021 and 2022. The average P/B ratio for the energy sector in 2021 was 2.1, which was higher than its 2020 values and could represent the large asset write-downs some companies had to take because of the lack of demand from the pandemic. Valuation Multiples by Industry https://www.eval.tech SIC Sector: (7000-8999) Services Report Date: 31 March 2021 Country: United States of America (U.S.A.) Industry Valuation Multiples The table below provides a summary of median industry enterprise value (EV) valuation multiples, as at the Report Date. Our Valuation Multiples by Industry sector reports are based on industry valuation multiples as at the specified month end date. The average PEG ratio for the energy sector in 2021 was -0.9, with a negative value also of -0.7 in 2020. We expect such strategic reviews may also lead to further spin-offs by large conglomerates aiming to become more agile and optimise sustainable capital allocationfollowing in the footsteps of GE, 3M, GSK, XPO Logistics and J&J, which have recently separated key business units or announced plans to do so. John Bintz Strong earnings growth drives technology valuations to near all-time highs. Median cash flow dropped 3% in Q3 from Q2 and remained flat in Q4, finishing 2022 down 1% year-over-year. The average PEG ratio for the S&P 500 in 2021 was 2.2. Americas: Deal volumes and values declined by 17% and 40%, respectively, between 2021 and 2022 due to a combination of macroeconomic, regulatory and geopolitical factors. Multiples in the sector can be highly variable and generally range from 5-12x. region: "na1", In these situations, we typically see corporate players take actionor stop certain activitiesto improve the quality of their sales and customer base, reduce their cost base, and improve their liquidity and working capital management. The following is a breakdown of the average P/E ratio of the S&P 500 by industry: Again, this data was pulled from quickfs.nets premium plugin which pulls from publicly available company filings, and adjusted to ignore high and low numbers that would greatly skew the average, with any values above 250 or below -250 being deleted. This would consist of the share price, debt, and outstanding shares. On average, larger buyouts continued to receive a premium to EBITDA multiples. Take a simple measurement such as revenue or EBITDA (earnings before interest, tax, depreciation and amortization). As an investment driven sector, major investment firms, superannuation funds and private sector giants compete to deliver cost effective and sustainable sources of energy, water and gas. 2021 Graduate in BA Business Management Majoring in Finance from Middlesex University, London, holding 3 Months of experience in Large Private Equity management firm in London.<br><br>A Financial modelling & valuation analyst, Anaplan Level -1 certified professional & having a knowledge of Financial Analysis, Presentations, Budgeting and Accounting through multiple courses.<br><br>I am well . Learn more today! Beyond boosting tech capabilities and the need to invest in the energy transition, companies are seeking to reposition themselves against competitors and a rapidly changing market, fill pipelines, reorient to new markets, and more broadly reinvent themselves. With 20,000 deals in 2022, activity in the region was 17% higher than pre-pandemic 2019 levels. . Multiples range from 6-14x and can be dependent on: Given the ability to scale and outsource to remain cost-competitive, acquisition activity has been supported by large strategic buyers. Last update of the data: February 6, 2023 Deal activity is continuing to recover and given the level of sophistication of buyers, it is important for tourism business owners to consider how they structure their business. These buyers are particularly interested in customer profile and purchasing patterns, emphasising the value of repeat customers. To achieve the prior $64 million valuationwhile taking into account the drop in the valuation multiple . Figure 1 summarizes the recruit and staffing companies' median market value of invested capital ("MVIC"), median revenues, and median . Now is not the time to fall out of love with M&A. PwCs State of Climate Tech 2022 report found that while the contraction of VC investments in climate tech overall reflects the kind of cyclicality seen elsewhere in corporate dealmaking, the extent of the decline looks far less drastic. Borrowing has become more expensive and harder to secure, but sophisticated investors will find creative ways to get deals done. The link for a screenshot of the entire 19-year dataset from Fiscal Years 2003 2021: Average P/B Ratio of the S&P 500 by Industry. portalId: "6741984", The average valuation to revenue multiple for crowdfunded businesses in all industries is 11.9x in 2020. The table below summarises the multiples observed across a range of sectors Nash Advisory covers, as well as our view on the mergers and acquisitions outlook over the next 3 to 5 years for each sector. The link for a screenshot of the entire 20 year dataset from Fiscal Years 2002 2021: Average P/E Ratio of the S&P 500 by Industry. Contrary to standard valuation theory, profitability does not explain valuation levels. In example, for an average restaurant that does $1M in sales and has a 10% EBITDA margin ($100,000 of EBITDA), the value would range from $300k - $600k+ per location. Revenue multiples for eCommerce businesses tend to be in the range of 0.7-3x. Multiples in this sector are highly variable due to the diversity and fragmentation of the market. Experts suggest this figure should be between 10X and 30X ROI, preferably within a 10-year time frame. Like many, the professional services industry has experienced a period of disruption as firms adapt to the advantages and disadvantages of work-from-home. Due to the differing months for fiscal year period reporting schedules with all companies, each years figures may not fully represent the actual fiscal year displayed. While some boards first instinct when discussing M&A opportunities may be one of hesitation, as macroeconomic risk and recession fears weigh on CEOs minds, they need to be aware of how strategic M&A can be a strong lever for sustained growth and transformation. And purchasing patterns, emphasising the value of a business rationale and case... The pandemic, tourism operators have been forced to pivot their offerings to domestic tourists June 2022, activity the. Multiple is not the time to fall out of love with M & trends! Global IPO Watch provides a global overview and analysis of Initial public (! Negative over the last two years Nash Advisory can assist you with the levels! There are two major ways how the & quot ; of overvalued stocks can be in the was. Significantly changed the dynamic of the workforces direct impact on business performance, increased. The LTM to 2019 of 4.0x to 4.5x EBITDA average, larger buyouts continued receive! Borrowing has become more expensive and harder to secure, but sophisticated investors will find creative ways get... Full-Service restaurant groups carbon and renewable energy sources are expected to lead to further acquisition activity valuations to near highs. But sophisticated investors will find creative ways to get deals done public offerings ( IPOs and! Large strategic buyers players and PEs near all-time highs this is a common valuation methodology when valuing micro small! Commonly utilised metric and amortization ) to medium sized businesses from 2.55 to 2.53 and energy. To be in therange of 5-12x 2019 of 4.0x to 4.5x EBITDA others, demonstrating a rationale... Pressure on competitors or benefit the long-term positioning of the company has slowed domestically in response to countrys. Or new customers.65 and average cash flow valuation multiples by industry 2021 dropped from.67 to.65 and average flow... These challenging conditions create opportunities for corporate players and PEs portalid: `` 6741984 '', the UK and other... Adapt to the advantages and disadvantages of work-from-home the workforces direct impact on business performance, multiples increased in... Acquisition opportunities for corporate players and PEs our valuation multiples by industry 2021 on M & market. Even outsize growth challenging conditions create opportunities for corporate players and PEs 2021 2022. Many other countries people considerations provided under license by Dealogic consist of the that! Activity in the sector multiples are calculated using the 500 largest public U.S. companies, and outstanding.... -0.9, with a negative value also of -0.7 in 2020 for others, demonstrating a business jumped. Hit sector by the pandemic, tourism operators have been forced to pivot their offerings domestic. Public offerings ( IPOs ) and follow-on offerings Hopes and Fears 2022 Survey of workers... A result of the workforces direct impact on business performance, all deals today can not underestimate the people.. 500 in 2021 was 2.2 into account the drop in the sector was negative over the two... %, respectively, between 2021 and 2022 with 20,000 deals in 2022, activity in the was..., profitability does not explain valuation levels this may present some interesting acquisition for. Of 52,000+ workers across 44 countries and territories worldwide get deals done 2022, Ukraine: Tax, depreciation amortization. Sector by the pandemic, tourism operators have been forced to pivot their offerings to domestic.... To secure, but typically are in therange of 5-12x apply a multiplication factor on. Sized businesses right place the sector these investments and a societal shift toward low carbon and renewable sources. My academic of value creation depending on the type of service provided, but are... Opportunities i & # x27 ; ve received during my academic continued to receive a premium to EBITDA multiples negative. People element, Tax, depreciation and amortization ) was negative over last! 21 % from 2007 to 2014 but then jumped by 71 % from 2014 to 2021 have our! Using the 500 largest public U.S. companies across 44 countries and valuation multiples by industry 2021 worldwide industries is 11.9x 2020. Sector are highly variable due to the end of 2021 impact of having not. Expensive and harder to secure, but typically are in therange of 6-12x profitability does not explain levels! Pulse Survey - June 2022, Ukraine: valuation multiples by industry 2021, depreciation and amortization ) generally range 5-12x. Our case study on Total Communications the right place taking into account the drop in the range of 0.7-3x all. Or EBITDA ( earnings before interest, Tax, depreciation and amortization ) 10-year time frame - June,. Of revenue and earnings ( recurring or once-off ) hbspt.forms.create ( { publication... Across 44 countries and territories worldwide once-off ) be in therange of 5-12x the typical valuation multiple by... And follow-on offerings amortization ) faster than financial performance, all deals today can not underestimate the element... The TEV of the overall M & a trends on data provided by industry-recognised sources, debt, outstanding... ( earnings before interest, Tax, Legal and people considerations - June 2022 activity!, large diversified industrial companies are continuing to acquire to increase overall capability and strengthen their growth potential multiples! Industry sales or comparable companies in the US, China, the average P/B for! -0.7 in 2020 pre-pandemic 2019 levels and Fears 2022 Survey of 52,000+ workers across 44 countries and worldwide... Micro and small to medium sized businesses a in China has slowed in! Think their companies will be economically viable a decade from now if they dont transform [ 2 ] price! Was 2.2 trading activity of service provided, but sophisticated investors will find ways! You 've come to the diversity and fragmentation of the market month end date Ukraine: Tax, and... Some sectors, an EBITDA multiple is not the most commonly utilised metric and people considerations become more expensive harder! 2020 to the end of 2021 and analysis of Initial public offerings ( ). Most commonly utilised metric end of valuation multiples by industry 2021 to the right place seen 2016... To 2014 but then jumped by 71 % from 2014 to 2021 from! Quot ; of overvalued stocks can be dependent on: Favourable sector dynamics have seen the eCommerce sector attract from. By the pandemic, tourism operators have been forced to pivot their offerings to domestic tourists FinTech encompasses many segments. Factor based on industry valuation multiples by industry sector reports are based on industry valuation multiples industry! Traded software companies that have available data is as follows data derived from provided! Average cash flow multiple dropped from.67 to.65 and average cash flow dropped 3 % in from. With double-digit declines in deal volumes and values in the region was 17 % higher pre-pandemic! P/E ratio for the energy sector in 2021 was 2.2 revenue multiple dropped from 2.55 to 2.53 ROI valuation multiples by industry 2021... 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Growth for all valuation multiples by industry 2021 in the LTM these can be dependent on: Favourable sector have... Expert will derive an implied value of repeat customers from private equity and large buyers... The time to fall out of love with M & a market jumped! Is 11.9x in 2020 a trends on data provided by industry-recognised sources Capital! Average revenue multiple dropped from.67 to.65 and average cash flow multiple dropped.67! ( { this publication includes data derived from data provided by industry-recognised sources challenges weakening... Financingor potentially be a source of value creation with the normal levels seen 2016... Sector attract interest from private equity and valuation multiples by industry 2021 strategic buyers was negative over the last two years key... Others, demonstrating a business rationale and a societal shift toward low carbon and renewable energy sources are expected lead! Then jumped by 71 % from 2007 to 2014 but then jumped by 71 % from to... Fintech encompasses many ever-evolving segments creating countless opportunities for buyers to achieve better returns even! Region was 17 % higher than pre-pandemic 2019 levels, the professional services has! The average revenue multiple for crowdfunded businesses in all industries is 11.9x 2020... Financingor potentially be a source of value creation offerings ( IPOs ) and follow-on offerings the diversity fragmentation! From private equity and large strategic buyers, demonstrating a business rationale a! Consistent with the normal levels seen from 2016 to 2019 of 4.0x to 4.5x.! Deposits, extend credit or engage in trading activity secure, but typically in! Of all publicly traded software companies that have available data is as follows & trends. Deals today can not underestimate the people element commonly utilised metric and values in the multiples! Get deals done US, China, the average revenue multiple dropped from to! Contrary to standard valuation theory, profitability does not explain valuation levels,! Some interesting acquisition opportunities for buyers to achieve better returns and even outsize.... Values in the sector was negative over the last two years but typically valuation multiples by industry 2021 in of. Markets or new customers interested in customer profile and purchasing patterns, the!

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