Valuation metrics of technology hardware companies catching up with software firms on AIM

Our analysis of the enterprise values (EVs) of technology companies trading on AIM shows a significant increase of 3.2% in the six months ended 30 June 2015, with technology companies now having an average EV of £61.4m.

The accelerated growth in the EVs of technology hardware companies compared with software companies was the most surprising finding, with an average increase of 18% in the EV of technology hardware companies compared to 10% in software companies.

Other key findings from our review include:
  • technology companies in the support services and telecoms sectors suffered a decline in EVs;
  • overall EV/EBITDA multiples of technology companies increased by 3.5% to 11.4;
  • overall EV/Revenue multiples of technology companies are now 1.91 x latest historic annual revenues.
In the six months up until 30 June 2015, over £700m was raised in the technology sector on AIM, with £47m raised on IPOs and £654m on secondary fundraisings.

Please click here for our further findings on individual technology sub-sectors.

Contacts

UK corporate finance team