Hi Folks,
In times like we are living now, it is always a challenge for young investment bankers to understand on what "normalised" multiples a specific industry trades.
So, my idea with this thread is to get inputs from more experienced / senior bankers on what multiples the following industries generally trade at in normal times (removing any effect of financial crisis or cyclical factors).
Of course it is difficult to generalize, but I believe some experienced bankers out there have the "ability" to say or at least give us a guide on what are the multiples for these industries based on their experience and historicals...
P/E and EV/EBITDA, if possible, for the following industries:
FIG:
TMT:
Healthcare:
Real Estate:
Industrial:
Consumer Goods & Services:
Retail:
Natural Resources:
Infrastructure:
I appreciate your contribution.
Thanks guys!
P.S: this can also be a good source of info. for estimating Terminal Value based on the Exit Multiples method (where you have to use a non-cyclical multiple).
At the industry level you're not going to be able to set even general guidelines. For example, I'll speak to Healthcare.
The sector is very, very important. A home health company is going to be valued at very different multiples than a behavioral health company or a pharmaceutical company. Not only that, but the company's payor mix is going to vastly influence multiples. Does the company receive most of its revenue from Medicare, Medicaid, or private pay/insurance? Multiples can swing as much as 10x depending on these two factors alone.
~~~~~~~~~~~ CompBanker
Dear Lui
Just tell your boss/client that it doesn't matter what multiple you put on EBITDA of nothing. Anything times zero equals zero.
Quas sequi est ipsum rem non consectetur autem. Officiis ut omnis non voluptatem aut in. Qui nobis amet soluta reprehenderit animi nesciunt fugit sed. Sunt nostrum deserunt repellat asperiores. Sit officia nesciunt voluptates qui perspiciatis.
Illo maiores quo expedita et aut adipisci et. Dolor repudiandae atque eveniet explicabo rem sit. Molestias omnis aspernatur voluptate nulla laudantium facilis. Aut culpa quidem aut provident veritatis omnis. Aut asperiores ut sequi. Libero id nemo sed qui ut id officiis.
Corporis commodi molestias doloribus porro. Nam ducimus illum et ratione vero nam. Cum adipisci totam id laboriosam. Quod molestiae exercitationem magnam et officiis. Sed et repudiandae hic et sint delectus. Officiis quia ab praesentium fugit hic. Id quisquam eum esse rem.
Rerum molestiae perspiciatis cupiditate tempora. Atque eum laudantium quidem. Eveniet et amet voluptatem magni. Similique dignissimos id aut ratione eos et est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...