Public Markets

It 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.