Here is an overview of the key evaluation indicators of companies in the US, UK and European application software sectors from Silverpeak, a member of the Globalscope network.By analyzing sector data, Silverpeak aims to provide a set of software industry indicators against which to measure the performance of companies.
Excerpts from the report:
- Both revenue and EBITDA valuation multiples rise for nearly all US software categories in Q2 2021, recovering from the dip last quarter. In Europe and the UK, valuation metrics continue to rise, with the UK EBITDA multiples diverging away from European multiples, now 40% higher.
- Revenue multiples for US Vertical reach an all time high, diverging from US Horizontal by 27%. US SaaS application software companies fail to recover to the highs reached at the end of 2020. In contrast, median revenue multiples for UK Small & Mid and European software companies have continued to increase and both reached all time highs in Q2 2021.
- EBITDA multiples rose in Q2 for every category except US vertical. Both UK Small & Mid and European software companies outperformed the US software companies both in terms of Q.o.Q. and Y.o.Y. growth, with the UK Small & Mid up 110% Y.o.Y. EBITDA margins and forecast annual revenue remained stable across most categories.
- The Enterprise Values Index rose across 3 of 5 the sub sectors with HR Tech, Fintech and Cybersecurity increasing in value. HR Tech continues to outperform other verticals and records the largest increase of the quarter. Fintech shows its largest increase moving to its highest level since January 2019.
You can view the full version of the report here.2021-07-16 14:46 M&A Reviews