Kroll launches the first edition of the Industry Multiples in China report. The report provides an overview of the trading multiples of companies across 11 key industries within the MSCI China Index as of December 31, 2018.
Highlights include:
- Eight out of 11 industries saw their median P/E multiples decline more than 30% during 2018
- Energy and consumer staples experienced the largest P/E contractions in Q4 2018; only IT and real estate saw increases in the final quarter of last year
- The materials and consumer discretionary sectors reported the largest declines in median P/E multiples of 49% and 47% respectively during 2018
- The utilities and consumer staples industries were most resilient, with median P/E multiples contracting by 9% and 28% respectively during 2018
- As of December 31, 2018, the communication services industry had the highest median P/E multiple at 19.8x; the real estate sector was rated the lowest at 7.0x
- The energy industry saw the greatest median P/E decline in Q4 2018, falling 27% quarter on quarter. Consumer staples saw the second-largest fall at 24% in the same period, as a decline in its P/E median multiple accelerated in the second half of 2018 after a robust H1
- The IT and real estate sectors saw median P/E multiples in Q4 2018 increase quarter on quarter by 7% and 4% respectively
