Industry Multiples in Europe - Q4 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, distributed among several industries and sectors, following the definitions by the Global Industry Classification Standard (GICS).

The global economy faced big challenges in 2022, such as high inflation, the war in Ukraine and the zero-COVID-19 policy in China. These will likely continue to have repercussions in 2023. Europe has been disproportionately impacted by Russia’s war on Ukraine, with energy costs rising significantly and high inflation sparking a cost-of-living crisis. Consumer and business confidence across Europe has fallen significantly, and both manufacturing and consumer services are in contraction for the eurozone and the UK. In December, the Kroll Institute expected that Germany and Italy were already seeing output fall and forecasted that the eurozone would be in recession in early 2023. The UK economy has already reported falling output in Q3 2022, and this may be the beginning of a protracted recession.

Our report provides a detailed overview of the EV/revenues, EV/EBITDA, P/E and P/B multiples of companies in the STOXX® Europe TMI covering nonfinancial industries and market capitalization/revenues, P/TBV, P/E and P/B multiples covering financial industries for which such data is available.

We also provide an eight-quarter look-back at the trends of these multiples for the industries covered.We hope you find this report helpful for 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.