The chart below shows that 50% of the companies in India trade in a EV/EBITDA multiple of 2-8 times. This graph compares with the Graph of US equities. Almost similar graphs
The graph for Indian equities
The graph for US equities
The maximum no of companies are in the 4-6 EV/EBITDA range and no doubt most of my portfolio falls in that range. I would normally expect the no of companies to decrease as the multiple increases, which happens except for one place where the no of companies rises unexpectedly i.e. 12-16 multiple range both for the US markets and the Indian Markets. I tried looking at the companies which fall in this range, but they did not belong to a particular sector. Any help in understanding this would be greatly appreciated
gud blog mate..
ReplyDeletedid u find answer for this query.. wat abt comapnies with EV/EBITDA more than 100.. operator driven.?!
and was jus looking @ EV/EBITDA of cement majors (ACC, Ultratech etc) and midcaps like birla corp. while the former ones are trading @ 8-10, the latter ones @ arnd 3-4.. why is thr a such a huge dif.. can liquidity and corp governance alone cause such a huge diff.. wat abt other sector.. any idea?
laxman
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