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Public MarketsFor the second straight reporting period the FOCUS Telecom Business Services Index (TBSI) both delivered a positive return and outperformed the broader indices. The sector shot up 14.9% in the past three months, which handily outperformed both the 8.5% gain in the S&P 500 and the 12.2% gain in the NASDAQ. The picture is even stronger for the full year with the TBSI up 43.6% over the last 12 months. This once again compares favorably to both the 28.9% gain in the S&P 500 and the 35.2% gain in the NASDAQ over the corresponding time period. Sector revenue and EBITDA multiples are also higher than what they were a year ago. The revenue multiple for the TBSI increased from 0.4x to 0.5x, while the EBITDA multiple grew from 8.7x to 10.5x.
Public MarketsFor the third straight period the FOCUS Carrier-Focused Telecom Technology Index (CFTTI) had a negative return. In this case, the CFTTI was only slightly in the red with a three-month loss of 0.3%. This performance trailed the broader indices as the S&P 500 and NASDAQ both turned in strong gains this period of 7.3% and 8.8%, respectively. The CFTTI’s 1.8% decline in the past year also compared unfavorably to strong year-over-year gains in both the S&P 500 and NASDAQ. Sector multiples closed out the period lower than they were at this same time last year. The sector revenue multiple dipped from 2.3x to 2.2x, while the sector EBITDA multiple fell more sharply from 14.4x to down to 11.9x.
Public MarketsThe FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) experienced a double-digit loss in our fall report- ing period, dropping 11.4% in the past three months. This was despite the fact that the S&P 500 and NASDAQ were up 1.9% and 1.4%, respectively, over the same time period.The EFTTI still remains in positive territory for the full year with a 12-month gain of 6.7%. However, this gain once again trails the broader indices as the S&P 500 is up 12.0% year-over-year and the NASDAQ is up 13.5% year-over-year. Even with the overall decline in the index, sector multiples actually increased compared to this same time last year.The sector revenue multiple went from 3.9x to 4.2x, while the sector EBITDA multiple increased from 16.2x to 17.5x.
Public MarketsIt was a hat trick for the FOCUS Communications Service Provider Index (CSPI) as the sector posted a third straight period in positive territory. This fall’s three-month gain was 6.6%, which was good enough to outperform both the 1.2% gain in the S&P 500 and the 0.1% loss in the NASDAQ. However, gains this period were not broad- based as three of the five sub sectors in the CSPI were actually in negative territory. For the full year period the sector is up 13.0%, a return that once again handily outperforms both of the broader indices. Sector multiples are slightly higher than they were at this time last year. The sector revenue multiple increased from 2.6x a year ago to 2.8x currently, while the sector EBITDA multiple went from 8.1x to 8.4x over the corresponding time period.
Public MarketsAfter a solid performance in our summer report, the FOCUS Telecom Business Services Index (TBSI) continued to make steady progress in the fall reporting period. The TBSI was up 4.5% in the past three months, which significantly outperformed both the 1.2% gain in the S&P 500 and the 0.1% drop in the NASDAQ over the corresponding time period. The sector also outperformed the broader indices for the full year period. The TBSI is up 10.7% in the past year, while the S&P 500 was only up 2.2% and the NASDAQ fell 0.6%. Sector multiple performance was mixed. The sector revenue multiple ticked up slightly compared to last year, increasing from 0.4x to 0.5x. However, the sector EBITDA multiple dropped from 10.0x a year ago to 9.4x currently.
In public markets, the FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) turned in a stellar reporting period this spring with a three month gain of 17.3%. Gains were broad-based as every single sub sector in the index was in positive territory for the period. In addition, the gains in the EFTTI handily outperformed the broader indices …
The latest issue of the FOCUS Government, Aerospace, and Defense Group Report — highlighting aerospace and defense — is now available. The new GAD Report includes:
- Major Q2 2019 Deals in the GAD Sector
- Performance: S&P 500 vs. GAD
- GOVERNMENT Sector Q2 2019
- AEROSPACE Sector Q2 2019
- DEFENSE Sector Q2 2019
- Selected GAD Transactions Q2 2019
- M&A Activity in the GAD Sector
- Recent FOCUS GAD Transactions
In this Issue:
- IT Market Analysis— Performance: S&P 500 vs. IT
- Company Comparables
- Information Technology Transaction Volume
- M&A Activity in the IT Sector: Selected Transactions
- Recently Closed Transactions