INDEX EVOLUTION
EV/EBITDA
INDEX VALUE (EV/EBITDA)
9.9x
2020 Q4
Continued increase in Q4 2020 for Infront Small Cap Eurozone valuation index to a record-high median EV/EBITDA level of 9.9x (8.7x in Q3 2020).

Updated 3 March 2021

Strong increase of the index in Q4 with stock markets continuing to perform very well despite the Covid-19 pandemic context. Small and mid caps EBITDA multiple gets to a record high level of 9.9x, ie + 14% compared to 8.7x at the end of Q3. Previous record was 9.6x in Q1 2018. Average index constituents share performance was of +14% in the fourth quarter, hence the median EV/EBITDA multiple followed the increase of the market prices. EBITDA levels are stable as most are not taking into account full fiscal year 2020 and are still quite low, impacted by the first quarters of 2020. High stock prices and high debt levels, increased with IFRS 16 roll out, explain the high Enterprise Value. In Q4, the Argos Mid-market valuation index of unlisted small and mid caps in Eurozone has also raised to a record-high value of 11.1x EBITDA (10.1x in Q3), mainly explained by the very high amount of cash flowing to the private equity business, due to accommodating central banks rate policy. Small caps in the USA had a high increase to 11.7x EBITDA (9.4x in Q3 2020). Following the same trend, Nordic small caps valuation index increased to 14.3x EBITDA (12.5x in Q3 2020). As for the Eurozone, the valuation of French small caps increased to 9.1x EBITDA (8.2x in Q3 2020) and German small caps also rose to a high level of 10.4x EBITDA (9.8x in Q3 2020). We can note a strong increase of the multiple (more than 15%) in the following industry sectors: Oil & Gas, Chemicals, Travel & Leisure and Industrial Goods.

INDEX EV/EBITDA MULTIPLES RANGES BY SECTOR

HIGHEST

Oil & Gas
>12.0x
Travel & Leisure
>12.0x
Retail
>10.0x
Food & Beverage
>10.0x
Technology
>10.0x

LOWEST

Utilities
<8.0x
Media
<8.0x
Chemicals
<8.0x
Construction & Materials
<8.0x
Automobiles & Parts
<8.0x
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INDEX CONSTITUENTS ANALYSIS
AS OF 31 DEC 2020
Median
Perf. (quarter)
+14.3%
Median
Market Cap.
84M€
Index No.
Companies
972
Median
EBITDA Margin
11.4%
Median
1yr Beta
0.67
INDEX CONSTITUENTS ANALYSIS
AS OF 31 DEC 2020
Median Stock Performance (quarter) +14.3%
Median Market Cap. 84M€
Number of Companies 972
Median EBITDA Margin 11.4%
Median 1yr Beta 0.67
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EV/EBITDA