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.
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.
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.
Capital IQ / Bloomberg
Component issues of the six sectors
|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|
© 2020 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. © 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.