Private Company Price Index (PCPI)
27 October 2016
PCPI – Q3 2016
Welcome to PCPI (Private Company Price Index) – BDO’s quarterly publication.
Each quarter we analyse the data surrounding Enterprise Value to EBITDA (Earnings Before Interest Tax Depreciation and Amortisation) multiples as a process of appraisal replacing the previously used Price to Earnings ratio. We look at current market data and compare these results to historic data to identify key trends, which also us to combine this information together with our industry experience and predict future market trends. The PCPI/PEPI tracks the relationship between the Enterprise Value (EV) to Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) multiple (EV/ EBITDA) paid by trade and private equity buyers when purchasing UK private companies.