Industry Multiples in Latin America—Q2 2024

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

Highlights

• According to the S&P Global Ratings (S&P), real economic growth in LATAM is forecasted to moderate to 1.2% in 2024 from an estimated 1.8% in 2023, partly due to the negative prospects in Argentina, as the fiscal adjustment made by the new Argentine administration is expected to result in a GDP contraction this year. Likewise, the World Bank also expects growth in the region to weaken in 2024. The World Bank expects growth to pick up in 2025 as interest rates normalize and inflation decelerates further.
• According to S&P data, inflation peaked for most countries in the region in 2023 and is expected to decline in 2024, with inflation in most countries expected to fall within or close to their respective central bank target rates. One notable exception is Argentina, which is facing a highly uncertain environment.
• In terms of EV/EBITDA, during the second quarter of 2024, median multiples have generally decreased across all sectors. Notable declines were observed in certain industries, such as capital goods (decrease to 6.5x in the second quarter compared to 8.3x in the first quarter) and materials (decrease to 6.0x in the second quarter compared to 7.3x in the first quarter). On the other hand, for information technology companies, the median multiple increased to 14.0x in the second quarter from 11.0x in the first quarter.

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.