Industry Multiples in Latin America – Q1 2023

We are pleased to launch the fourth edition of our Industry Multiples in Latin America (LATAM) quarterly report. This report provides valuable insights into trading multiples for various key industries in LATAM as of March 31, 2023. Our analysis uses publicly traded companies in Latin American countries, distributed among several different industries and sectors, following the definitions by the Global Industry Classification Standard (GICS).

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, 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.

Highlights

• According to S&P reports, higher interest rates will eventually have an impact on credit growth in the region. While businesses are deeply impacted by the tightening shock, the rapid rise in interest rates is also having an impact on governments and households.
• Inflation, according to S&P, has likely peaked in most emerging countries and started to recede, although the deceleration in LATAM was below expectations. In 2023, inflation is forecasted to fall below 10% for major countries in the region, except for Argentina, Colombia and Venezuela.
• In terms of EV/EBITDA, during the first quarter of 2023, while median multiples have not changed significantly for many industries, some of them experienced notable decreases. For instance, in the energy sector, the median EV/EBITDA decreased 1.4x in Q1 2023 in relation to Q4 2022.

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.