Public Markets

The FOCUS Telecom Business Services Index (TBSI) had a fourth straight reporting period with a positive return, marking a full year of positive returns since the outbreak of the pandemic. This past three months was particularly strong as the sector’s gain of 20.1% handily outperformed both the 5.8% gain in the S&P 500 and the 2.8% gain in the NASDAQ. For the full year, the TBSI is up a very impressive 63.0%. While this gain was good enough to give it a comfortable lead over the 53.7% year-over-year increase in the S&P 500, it still lagged the 72.0% gain in the NASDAQ, Sub sector multiples are also meaningfully higher than they were at this time last year.The sub sector revenue multiple jumped from 0.5x to 0.7x, while the EBITDA multiple spiked from 6.6x to 9.3x.