Average multiples by sector by region

Multiples Heatmap Q2 2018 Sector Region
  • This chart analyses the average multiples by sector and region for the six quarters ended 30th June 2018.
  • TMT remains the hottest sector across Europe seeing average multiples of 11.3x. The DACH and Nordic regions continue to be at the forefront of this trend, with average TMT multiples of 12.8x and 12.1x respectively. The lowest TMT multiples were seen in the Southern region at an average of 9.9x.
  • The financial services and healthcare sectors have seen the second highest valuations, with multiples in both sectors growing to 10.8x over the last six quarters.
  • The financial services sector has seen particularly high valuations in the France (11.5x), Nordic (11.4x) and Southern (12.8x) regions with best value being seen in Benelux (9.3x).
  • The healthcare sector has seen double digit multiples in all areas other than the Southern region.
  • Multiples paid in the consumer sector continued to decrease in Q2 2018: the six-quarter average dropped down to 9.8x in Q2 2018 compared to 10.3x in Q1 2018.
  • The business services average multiple remains stable at 10.5x, the same six-quarter average as in Q1 2018.
  • Slight multiple increases in the Nordic, DACH and UK/Eire regions have been offset by decreases in the France and Benelux regions.
  • PE deal multiples paid in the food and beverage sector have increased in Q2 2018, driving the six-quarter average up to 10.4x, with all regions other than Benelux seeing double digit multiples.
  • Multiples in the Nordic region have remained the highest and reached a peak of 11.2x for the region over the last 18 quarters. This was mainly driven by the healthcare, TMT and business services sectors.
  • Multiples paid in Benelux, DACH, France and UK/Eire regions remain closely clustered together around the European average multiple of 10.3x.
  • The hottest sectors in UK/Eire over the last six quarters have been TMT, healthcare and financial services.
  • The Southern region continues to offer best value, with the six-quarter average multiple dropping from 9.8x in Q1 2018 to 9.7x in Q2 2018, and it remains the only region with single digit six-quarter multiple average.
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