Industry Multiples in Latin America Report Q2 2022

We are pleased to launch the first edition of our Latin America Industry Multiples quarterly report. This report provides valuable insights into trading multiples for various key industries in Latin America, as of June 30, 2022. Our analysis uses publicly traded companies in Latin American countries, distributed among several different industries and sectors, following the definitions by the Global Industry Classification Standard (GICS). Our report provides a detailed overview of the EV/Revenues, EV/EBITDA, P/E and P/B multiples of publicly traded companies in LATAM covering non-financial 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 lookback at the trends of these multiples for the industries covered.

Highlights

• Growth in LATAM and the Caribbean is forecast to slow to 2.5% in 2022, declining from 6.7% in 2021. The two largest economies in the region, Brazil and Mexico, are expected to post low growth rates in 2022 (1.5% and 1.7%, respectively), dragging the region’s expected overall growth. Likewise, the following two years are expected to remain weak, at 1.9% in 2023 and 2.4% in 2024.
• In terms of EV/EBITDA multiples, as a reflection of the deteriorated market conditions and pessimistic outlook, multiples have generally decreased over the first semester of 2022.
• All sectors/industry groups presented in this report observed a decrease in their multiples during the first semester of 2022. The industry with the least decrease was electric, gas and water utilities, which was moderately stable (0.1x EV/EBITDA decrease since the last quarter of 2021).

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