This chart analyses the average quarterly multiples by sector for the six quarters ended 30th June 2018.
The TMT sector was the hottest sector in Q2 2018, with average multiples paid surging to 13.0x in Q2 2018. The sector has also seen the highest volatility over the last six quarters.
The financial services sector multiples saw a small drop to 11.1x in Q2 2018 but remain above the six-quarter average of 10.8x.
The consumer sector has seen a second consecutive drop in multiples paid by financial sponsors for targets in the sector. The average multiple paid in Q2 2018 was 9.1x compared to 11.0x in Q2 2017 and 9.5x last quarter. However, the DACH and Nordic regions continue to see double digit multiples being paid for consumer assets.
The automotive sector continued to see a recovery in multiples paid and targets in the sector have traded at multiples near the six-quarter average. The sector has continued to offer the best value opportunities.
Multiples in the food and beverage sector continued to increase for a third consecutive quarter and reached 11.2x in Q2 2018. The sector also saw the lowest volatility over the six quarter period.
The healthcare sector has seen its highest quarterly average multiple (11.6x) since Q4 2014, when the average multiple was 12.3x. Targets in the sector have been particularly highly valued in the Nordic and France regions.
The average multiple in the industrials and chemicals sector recovered in Q2 2018 and increased from 9.1x to 9.7x.
The business services sector average multiple has dropped back to 10.0x following an increase to 11.1x in Q1 2018.
TMT was the hottest sector in Q2 2018 at 13.0x and over the last six quarters with an average multiple of 11.3x. DACH and Nordic regions drove this trend with TMT valuations in those regions increasing to 12.8x and 12.1x respectively.
Over the six quarters ending 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.