Market Check! - EV/EBITDA multiple trends by sector - KPMG Japan
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Market Check! - EV/EBITDA multiple trends by sector

Market Check! - EV/EBITDA multiple trends by sector

Looking at six sectors ranging from hardware centric to software centric, this section provides fixed-point observation data for the market multiples of major markets in Japan, the US, and China.

1000

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M&As are defined as an important tool for companies in realizing growth strategies. M&As by Japanese companies both in Japan and overseas continue to increase.

We hope these data will provide you with insight into the M&A transaction trends in the sector to which your company belongs, as well as the recent growing trend of cross-sector M&A transactions.

Changes in EV/EBITDA multiples: Japan

 

Changes in EV/EBITDA multiples: Japan

Country comparisons of changes in EV/EBITDA multiples by sector : Japan / USA / China

Country comparisons of changes in EV/EBITDA multiples by sector : Japan / USA / China

EV/EBITDA multiples:
Index indicating the enterprise value (EV) multiples against earnings before income tax and depreciation and amortization (EBITDA )
*In this analysis, we determine EV as the total of market capitalization and interest-bearing liabilities. The EBITDA stated is for the most recent 12-month period.

How to calculate multiples
We classify the component issues of representative stock indexes (JPX Nikkei 400; S&P 500, CSI 300) into the following six sectors defined by KPMG: “energy, utilities and communications,” “materials and capital goods,” “automobiles and durable consumables,” “consumer goods and retail,” “IT Internet,” “pharmaceuticals and healthcare.” Then we illustrate them with charts.

Sources
Capital IQ / Bloomberg

Component issues of the six sectors

Sectors Industry classification
Energy, utilities and communications Energy-related facilities and services / Oil, gas and consumable fuels / Electrical communications, wireless services, independent power generation business / Electric power, gas, tap water / Comprehensive utilities
Materials and capital goods Chemical, machinery, semi-conductor, aerospace, defense / Metal, mining / Paper products, wood products, containers, packages / Construction, civil works, electrical equipment, architectural materials / Trading companies, distribution, conglomerate automobile parts / Automobiles
Automobiles and durable consumables Durable goods
Consumer goods and retail Retail, sales / Beverage / Foods / Tobacco / Home appliances / Personal goods
IT Internet Internet sales, catalog sales / Interactive media and services / IT services / Software healthcare related
Pharmaceuticals and healthcare Biotechnologies / Pharmaceuticals / Life science tools

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