The figure below shows the average EV/EBITDA multiples across industries by market capitalization between 2014 and 2018.
Posted: Fri Mar 04, 2022 9:40 am
The figure below shows the average EV/EBITDA multiples across
industries by market capitalization between 2014 and 2018. Note
that EV is the enterprise value.
1. What is the economic interpretation of the 7.9 EV/EBITDA
multiple for the firms with a market capitalization between $100
and $250 million in the manufacturing industry? 2. Across
industries, larger firms are valued at a higher multiple than
smaller firms. Give at least 3 possible explanation for this
pattern.
EV/EBITDA Multiples by Industry 12.0x 9.9x 10.0x 9.5x 9.2x 8.7x 8.0x 7.9x 7.8% 8.0x 8.3x 7.4% 8.0x 8.2x 7.6% 6.78.6% 7.5X 6.4% 6.07 6.3x 5.96.17 6.3x 5.6x 6.5% 5.5x 6.0x 4.Ox 2.0x 0.0x Manufacturing Distribution Aerospace & Defense Business Services Healthcare Products & Services Consumer Products and Food & Beverage $10-25M $25-50M -$50-100M $100-250M
industries by market capitalization between 2014 and 2018. Note
that EV is the enterprise value.
1. What is the economic interpretation of the 7.9 EV/EBITDA
multiple for the firms with a market capitalization between $100
and $250 million in the manufacturing industry? 2. Across
industries, larger firms are valued at a higher multiple than
smaller firms. Give at least 3 possible explanation for this
pattern.
EV/EBITDA Multiples by Industry 12.0x 9.9x 10.0x 9.5x 9.2x 8.7x 8.0x 7.9x 7.8% 8.0x 8.3x 7.4% 8.0x 8.2x 7.6% 6.78.6% 7.5X 6.4% 6.07 6.3x 5.96.17 6.3x 5.6x 6.5% 5.5x 6.0x 4.Ox 2.0x 0.0x Manufacturing Distribution Aerospace & Defense Business Services Healthcare Products & Services Consumer Products and Food & Beverage $10-25M $25-50M -$50-100M $100-250M