Tue, Nov 15, 2022
Industry Multiples in Latin America – Q3 2022
We are pleased to launch the second edition of our Industry Multiples in Latin America (LATAM) quarterly report. This report provides valuable insights into trading multiples for various key industries in LATAM as of September 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 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 lookback at the trends of these multiples for the industries covered.
- According to the International Monetary Fund (IMF) in its World Economic Outlook report released in October 2022, real economic growth in LATAM and the Caribbean is forecast to moderate to 3.5% in 2022, declining from 6.9% in 2021. Expected growth for the region in 2022 is now 0.5 percentage points above the IMF’s forecast in July.
- In terms of EV/EBITDA, multiples have generally decreased over the first three quarters of 2022 due to a pessimistic outlook and deteriorating market conditions. However, in Q3 2022, many industries present higher EV/EBITDA multiples when compared to the multiples in our Q2 2022 report.
- The consumer durables and apparel industry had the highest increase in EV/EBITDA multiple this quarter with a 2.6x increase.
We hope you find this report helpful in understanding the range of trading multiples for major industries in LATAM. If you would like to receive further information or discuss any of the findings, please contact us.
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