Duff & Phelps launched the fourth edition of its Industry Multiples report for the quarter ended June 2018. The report provides a detailed overview of the P/B, P/E, EV/ EBITDA and EV/Sales multiples of companies in 21 major industries in the S&P BSE 500 Index. 

Highlights include:

  • Equity markets in emerging economies witnessed selloffs due to the rising dollar and expected increase in Fed interest rates. Surging crude oil prices and trade tensions between the U.S. and China also contributed to the subdued performance of equity markets in Asia during the quarter.
  • P/E multiples for all industries in India declined from March 31, 2018 to June 30, 2018, demonstrating market correction in the quarter
  • Metals and mining, energy, construction material and electric and gas utilities witnessed a significant decline in P/E multiples compared to other industries, while multiples of the internet software and services industry increased due to weakening of the rupee and U.S. tax cuts.
  • Largest decline in the multiples was observed in metals and mining industry where the median P/E multiples decreased from 18.0x to 10.9x and electric and gas utilities industry which decreased from 19.5x to 13.0x. 
  • The apparel and internet software and services industries witnessed an increased in their median P/E multiples from 17.7x to 33.3x and 19.3 to 20.3x, respectively.

Industry Multiples in India Report Q2 2018

from Duff & Phelps

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