Industry Multiples in Latin America—Q3/Q4 2023 and Q1 2024

This report provides valuable insights into trading multiples for various key industries in LATAM as of September 30, 2023, December 31, 2023 and March 31, 2024.

Our report provides a detailed overview of the EV/revenues, EV/EBITDA, P/E and P/B multiples of publicly traded companies across diverse sectors in LATAM, following the definitions by the Global Industry Classification Standard (GICS). It covers nonfinancial industries and market capitalization/revenues, P/TBV, P/E and P/B multiples and includes financial industries for which such data is available. We provide an eight-quarter lookback at the trends of these multiples for the industries covered.

Highlights

• According to the International Monetary Fund (IMF), real economic growth in LATAM and the Caribbean, is forecasted to moderate to 2% in 2024 from an estimated 2.3% in 2023. Similarly, S&P Global (“S&P”) also believes that the current economic growth cycle in LATAM countries is decelerating. According to S&P, growth expectations for the region remain modest, mainly due to the negative prospects in Argentina. On the other hand, Brazil and Mexico are expected to perform better than previously estimated.
• According to the IMF data, inflation has peaked for most countries in the region in 2023 and is expected to decline in the short term. The one exception is Argentina, which is facing a highly uncertain environment.
• In terms of EV/EBITDA, multiples generally increased in 2023 across all sectors, back from the general decrease observed in 2022. The deteriorating market conditions that were present during most of 2022 started to improve, as the process of disinflation gained momentum in 2023. In the first quarter of 2024, some notable changes were observed. For information technology companies, the median multiple increased to 11.0x in Q1 2024 compared to 8.7x in Q4 2023. For health care companies, the median multiple decreased to 7.4x in Q1 2024 compared to 9.7x in Q4 2023, and for real estate companies, the median multiple decreased to 11.7x in Q1 2024 compared to 15.4x in Q4 2023.

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 more information or discuss any of the findings, please contact us.