Industry Multiples in Latin America–Q3 2024

This report provides valuable insights into trading multiples for various key industries in LATAM as of September 30, 2024. Our analysis uses publicly traded companies in Latin America, distributed among several different industries and sectors, following the definitions by the Global Industry Classification Standard.

Highlights

• According to the International Monetary Fund (IMF), real economic growth in LATAM and the Caribbean is forecasted to moderate slightly to 2.1% in 2024 from an estimated 2.2% in 2023, and to increase to 2.5% in 2025. Growth in some countries in the region is expected to moderate in 2024, but other countries have proved to be more resilient than anticipated earlier in the year.
• According to IMF and S&P data, inflation peaked for most countries in the region in 2023 and is expected to continue to decline in 2024. Nevertheless, the disinflation process has slowed down in major countries for a variety of reasons. Except for Argentina, inflation in most countries is expected to fall within or close to their respective central bank target rates in 2025.
• In terms of EV/EBITDA, during the third quarter of 2024, while median multiples have generally remained stable across all sectors, some notable changes were observed. For information technology companies, the median multiple decreased in the third quarter to 8.2x from 14.0x in the second quarter. For companies in commercial and professional services, the median multiple increased in the third quarter to 8.7x from 6.2x in the second quarter.

Our report provides a detailed overview of the EV/revenues, EV/EBITDA, P/E and P/B multiples of publicly traded companies in LATAM covering nonfinancial industries and market capitalization/revenues, P/TBV, and P/E and P/B multiples covering financial industries for which such data is available. We also provide an eight-quarter lookback at the trends of these multiples for the industries covered.

We hope you find this report helpful in understanding the range of trading multiples for major industries in LATAM. If you would like to receive further information or discuss any of the findings, please contact us.