Global BV News: Multiples in China lower than year-end 2020

BVWireIssue #228-3
September 22, 2021

global business valuation
international business valuation, mergers and acquisitions (M&A), transaction multiples, multiple, earnings multiples

As of Aug. 31, 2021, earnings multiples (price to LTM earnings) for Chinese companies were lower overall than those at the end of 2020, with an average of 30.8x compared to 40.3x for year-end 2020, according to “China Transactions Insights—Fall 2021” from Duff & Phelps (a Kroll business). Healthcare, technology, consumer discretionary, consumer staples, and real estate sectors showed declines in earnings multiples since December 2020, while multiples for the industrials and materials sectors increased, the report says.

Trailing EBITDA multiples (enterprise value-to-LTM EBITDA multiples) for Chinese companies decreased on average 7% from year-end 2020 to Aug. 31, 2021. Healthcare, technology, consumer discretionary, and consumer staples showed declines in EBITDA multiples, with multiples for the industrials and materials sectors showing improvement through August.

The report has much more information and data on industry sector performance, IPO activity, COVID-19 recovery, cross-border investment, and more.

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