Industry Multiples in Europe - Q2 2022

We are pleased to launch the third edition of our Industry Multiples in Europe quarterly report. This report provides valuable insights into trading multiples for various key industries in Europe as of June 30, 2022. Our analysis uses constituents of the STOXX^® Europe Total Market Index (“STOXX Europe TMI”), which covers about 95% of the free float in Europe.

Highlights

• According to the International Monetary Fund (IMF) in its World Economic Outlook Update, the war in Ukraine has negatively impacted major European economies by driving higher energy prices and other input costs, as well as weaker consumer confidence.
• The European Central Bank (ECB) announced it would raise its target interest rate by 0.25% at its July meeting, which would represent the first rate increases in over a decade and would end its long-standing negative interest policy.
• Eurozone inflation reached a record of 8.6% in June, its highest level since the inception of the monetary union.
• In terms of EV/EBITDA multiples, almost all sectors/industry groups presented in this report observed a decrease in their multiples during the second quarter of 2022. Semiconductors and semiconductor equipment was the industry group with the highest decrease (a change from 17.4x to 10.1x, or 7.3x lower compared to Q1 2022’s multiple).

We hope you find this report helpful in understanding the range of trading multiples for major industries in Europe. If you would like to receive further information or discuss any of the findings, please contact us.