While its decline slowed somewhat this period, the FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) continued its downward slide with a loss of 3.1% in the past three months.
Washington, DC, (October 20, 2022) – FOCUS Investment Banking (“FOCUS”), ...
Things went from bad to worse for the FOCUS Communications Service Provider Index (CSPI) this period as the sector plummeted 25.6%. This decline was significantly steeper than both the 5.3% decline in the S&P 500 and the 4.1% decline in the NASDAQ over the corresponding time period. The situation is also bleak for the full year period with the sector down slightly more than 45% over the past 12 months. Once again, this drastically underperformed the returns in the S&P 500 (down 16.8%) and the NASDAQ (down 26.8%). Sector multiples continued to fall, ending the period at 2.1x revenue and 6.0x EBITDA. This compares unfavorably to year-ago multiples of 2.9x revenue and 8.2x EBITDA.
The FOCUS Telecom Business Services Index (TBSI) suffered a negative return for the second straight reporting period with a 4.1% decline. While disappointing, the sector still managed to outperform the 5.3% decline in the S&P 500 and stay even with the 4.1% drop in the NASDAQ. The situation is similar for the full year period. While the sub sector is down 16.1% over the past 12 months, it still outperformed the S&P 500 (down 16.8%) and the NASDAQ (down 26.8%). Sector multiples closed out the period at 0.8x revenue and 9.7x EBITDA. Both of these are lower than year-ago multiples of 1.0x revenue and 10.4x EBITDA.
The FOCUS Carrier-Focused Telecom Technology Index (CFTTI) held steady over the past three months, neither gaining nor losing value.
Public Markets Continuing its downward slide, the FOCUS Enterprise-Focused Telecom ...
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The FOCUS Communications Service Provider Index (CSPI) dropped 12.8% in the past three months. This is the fourth straight period (a full year) where the sector suffered a negative return. Losses were broad based, with every sub sector in the CSPI in negative territory. The broader indices were also down this period with the S&P 500 and the NASDAQ falling 16.5% and 22.4%, respectively. Not surprisingly given this recent string of losses, the CSPI is deeply in negative territory for the full year period with a decline of slightly more than 31%. This decline is even larger than the substantial declines in the broader indices of 11.9% in the S&P 500 and 24.0% in the NASDAQ. Sector multiples are meaningfully lower than they were a year ago.The sector revenue multiple went from 3.1x to 2.5x, while the sector EBITDA multiple went from 8.7x to 7.1x.
The FOCUS Communications Service Provider Index (CSPI) dropped 12.8% in the past three months.This is the fourth straight period (a full year) where the sector suffered a negative return. Losses were broad based, with every sub sector in the CSPI in negative territory. The broader indices were also down this period with the S&P 500 and the NASDAQ falling 16.5% and 22.4%, respectively. Not surprisingly given this recent string of losses, the CSPI is deeply in negative territory for the full year period with a decline of slightly more than 31%. This decline is even larger than the substantial declines in the broader indices of 11.9% in the S&P 500 and 24.0% in the NASDAQ. Sector multiples are meaningfully lower than they were a year ago.The sector revenue multiple went from 3.1x to 2.5x, while the sector EBITDA multiple went from 8.7x to 7.1x. DOWNLOAD TO READ MORE
The FOCUS Carrier-Focused Telecom Technology Index (CFTTI) did not escape from the overall market carnage and dropped 15.8% in our summer reporting period. This decline was steeper than the drop in both the S&P 500 (down 5.5%) and the NASDAQ (down 12.1%). This period’s declines were also enough to push the sector into negative territory for the full year. The CFTTI is now down 15.7% compared to this time last year, which once again compares unfavorably to the 1.7% drop in the S&P 500 and the 12.1% drop in the NASDAQ. Sector multiples continued to decline. The sector revenue multiple dropped from 2.6x a year ago to 2.1x currently, and the sector EBITDA multiple fell from 12.8x to 10.2x over the same time frame.
Securities transactions conducted by FOCUS Securities LLC, an affiliated company, registered broker-dealer and member FINRA/SIPC © 2025 FOCUS Investment Banking LLC
Securities transactions conducted by FOCUS Securities LLC, an affiliated company, registered broker-dealer and member FINRA/SIPC © 2025 FOCUS Investment Banking LLC
