Industrial Tech Valuation development 2019 – 2023

Industrial Technology Overview

DEVELOPMENT MARKET CAPITALISATION & EV/EBITDA

More than 1.5 years after the outbreak of the Covid 19 pandemic, the Industrial Technology Index is persistently at a high level after stabilizing. The total value (equity) of the companies included in the index is around 80 % above pre-Covid level. Since the Covid dip, absolute earnings (EBITDA) increased by 30% (!), while average net debt decreased by 20%.

As a result, relative valuations (EV/EBITDA) moved to 13.5x (15.2x previous year). The industry substantially outperforms the market (e.g., 30% Dax 30, last 2 years).

OUTLOOK EBITDA INDUSTRIAL TECHNOLOGY INDEX

The outlook is very good, with absolute EBITDA up to 2023 (+13% p.a.) driven by increasing sales (10% p.a.) and improved profitability (EBITDA margin: 16-18%).

Negative impacts from expiring Covid aid packages, weak growth forecasts in key markets, sector-specific supply chain bottlenecks (especially semiconductors) and rising commodity prices have not had a substantial impact on the robust performance of the index.The aftermath of the pandemic will further contribute to digitization and automation driving growth.

Favorable macroeconomic factors that encourage investments (e.g., low interest rates) also support this development.

ANNEX

EBITDA multiples by sector: January 2019 & October 2021 (index 8.5x & 13.5x)

Development of market capitalization by sector: January 2019 – October 2021 (Index 70%)EBITDA margin by sector from 2019 to 2023 (in %)EBITDA growth by sector from 2019 to 2023 (in %)Capitalmind & Industrial Technology

The Capitalmind Industrial Technology Index tracks daily developments in sectors such as Control Tech, Industrial Software, Integrated Providers, Engineering, Machinery, Vision Tech & Robots/Motions.

The index includes valuations, growth projections, profitability margins and other metrics.

Would you like to learn more about valuations, buyer activity and current opportunities in the market?

Feel free to contact us.

You can find more information on our website at https://capitalmind.com/industrials/ 

 

 

 

 

 

 

Ervin Schellenberg
Ervin Schellenberg
Managing Partner
Deutschland
Christian Maurer
Christian Maurer
Manager
Deutschland
Arne Laarveld
Arne Laarveld
Partner
Deutschland