Public Markets

FOCUS’ Enterprise-Focused Telecom Technology Index (EFTTI) was back in the red this period, albeit with a slight loss of only 1.0%.This compared to a flat performance for the S&P 500 and a modest gain of 1.6% for the NASDAQ. Even with this period’s loss, the EFTTI is still up strongly for the full year with a 12-month gain of 23.4%. This puts it more or less in the middle of the 7.7% gain in the S&P 500 and the 31.6% gain in the NASDAQ over the corresponding time frame. Sector multiples are also higher than at this same time last year. The sector revenue multiple increased from 4.1x to 5.2x, while the sector EBITDA multiple went from 17.0x to 20.4x.