North American Industry Market Multiples

An industry must have a minimum of 25 (U.S.) and 15 (Canada) company participants to be calculated. For all reported multiples in the U.S. and Canada, the average number of companies in the calculation sample was 93 (U.S.), and 51 (Canada); the median number of companies in the calculation sample was 53 (U.S.), and 33 (Canada). Sample set includes publicly-traded companies (private companies are not included). Source: Data derived from Standard & Poor's Capital IQ databases. Reported multiples are median ratios (excluding negatives or certain outliers). MVIC = Market Value of Invested Capital = Market Value of Equity plus Book Value of Debt. EBIT = Earnings Before Interest and Taxes for latest 12 months. EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization for latest 12 months. Note that due to the exclusion of negative multiples from the analysis, the number of companies used in the computation of each of the three reported multiples across the same industry may differ, which may occasionally result in a counterintuitive relationship between those multiples (e.g. the MVIC-to-EBITDA multiple may exceed MVIC to EBIT).

Valuation Insights, Second Quarter 2019.pdf (3.8) MB

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