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Impact of Covid on SME valuations?

For listed SMEs, the dedicated indices of the Paris Stock Exchange show a decline in valuations of around 24%.  

What about unlisted companies, which make up the bulk of the country's economic fabric? 

For non-listed companies, it is necessary to observe the latest transactions on the markets to understand the reality of the impact of the crisis on the valuation of non-listed companies.

According to Mergermarket and Debtwire Overview, unlisted SMEs were on average valued at 10.7 times their annual operating income (EBITDA) inQ1, compared to 12 times at the end of 2019, a decline of 11%.

This multiple returns to the level of multiples observed in 2014

A second study byArgos Wityu, an investment fund that publishes a valuation indicator for unlisted SMEs, notes that the average multiple on EBITDA fell to 9.3 times in the first quarter, compared with 10.3 times at the end of 2019

The ratios remain, for the moment, higher than those of the stock market. 

An article to read in its entirety on the Challenges website : click here

 

Company / SME valuation service: learn more.

 

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