close
Share with your friends

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

Related content

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

© 2021 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.


For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today