MULTIPLES
finexpert.info offers aggregated industry multiples to value companies compared to their industry. To use the entity approach based on enterprise values the primary ratios are EBIT multiples, Sales multiples and EBITDA multiples. With respect to the equity approach there are multiples based on Net Earnings and on Sales. EBIT multiples and PE multiples for all companies in the Prime All Standard are available in addition.
• EV/EBIT multiples
• EV/Sales multiples
• EV/EBITDA multiples
• P/E– ratios
• Price/Sales multiples
Comparative valuation by the multiple method has to meet some essential requirements: (1) transparency in the data source, (2) consistent definitions of capital market data and earnings figures, and (3) traceability of calculation methods. Multiples available on finexpert.info fully meet this standard.
Raw data are taken from Thomson Reuters Datastream at 15.4.2012 and tables have been calculated by the Chair of Financial Management @ HHL (Prof. Dr. Bernhard Schwetzler). The data have been carefully extracted and calculated; though no liability can be taken for their correctness.
Firms displaying a negative multiple have been excluded from the calculation of the aggregated sector multiples. Sector composition has been adapted from the official industry allocation in the Deutschen Börse AG´s prime standard. Earnings estimate for forward-multiples have been derived by I/B/E/S for the current business year. Outliers have been eliminated to get meaningful industry multiples using 5%-quantile as the upper limit for exclusion the cut-off values.
FURTHER LINKS
finexpert Report
The finexpert Report will be offered every quarter. Being the only objective, market based, regularly published and free accessible industry data finexpert industry multiples and betas have become an important information source for market participants. In the quarterly update our tables of current multiples and beta estimates will be combined with comments and graphs on the most recent market developments. Additionally the quarterly market update will contain information on recent transactions and exits in the PE sector in Germany and Worldwide. Finally our update will pick one particular scientific point of interest and give a short comment on most recent developments in finance research . >more if you are a member and logged in
The Development of Multiples over the Financial Crisis
We have calculated multiples quarterly from January 2006 until July 2011. Our study gives an overview of the development in the time of financial crisis with respect to EV/EBIT and P/E multiples, covering both trailing multiples and forward multiples. Based on 14 industries of Deutsche Börse, the Prime All Share, DAX, MDAX and TecDAX, we also derived a range of +- 1 standard deviation around the mean multiple to give information on the dispersion of the industry multiples. >more
