Share this content

Earnings valuation

Does anyone have any knowledge of typical P/E ratios currently being used in business earnings valuations?  I know that business valuation is not a precise science(!), but I am trying to get an idea of the sort of earnings multipliers being used in disposal negotiations in the current market.

The particular business I am interested in, is privately owned, based in the North of England and operates in the construction industry.  The shareholding in question is a minority holding, so it would also be very helpful if anyone has experience of typical P/E ratio discounts which might be applied for a minority shareholding.

I have commissioned and received a valuation of the shareholding, which has used one P/E ratio. However that P/E ratio differs wildly from the ratio being quoted by the 3rd party.

To reiterate, I know there is no right and wrong answer to this question, and any deal will only be done if the potential buyer and seller can agree a price for the shares.  Nonetheless it would be very helpful to get some view on typical P/E ratios which might be applicable in the current market.

Many thanks in anticipation.



Please login or register to join the discussion.

BDO Private Company Price Index

Have you looked at BDO's quarterly survey of private company deal valuations -

Thanks (1)

No, I wasn't aware of that survey Paul - that is very helpful, thank you.

However, I'd still be very interested in anyone else's views or experiences to supplement that information.




Thanks (0)