GCA Altium Digital, Media & Internet Monitor Q3 2020

GCA Altium is pleased to provide you with the Q3 2020 edition of our Digital, Media & Internet Monitor, which offers a quarterly update on global market data, sector valuations and M&A activity.
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The GCA Altium Digital, Media & Internet Monitor is tailored to the needs of busy executives and investors seeking a comprehensive overview of the M&A and valuation landscape, trend analyses and insights into the current transaction environment.

Key developments in Q3 were:

  • Share price performance was positive / stable across almost all subsectors over the past quarter. Inventory-based E-commerce continues to outperform the rest of the asset classes (+31.4%) as a result of a fundamental shift in consumer behavior due to the COVID-19 pandemic. Other positive performers were Gambling (+16.3%) and Diversified & Portals (+12.8%). Since Jan-20, Inventory-based E-commerce has experienced the strongest returns (+90.9%), followed by Marketplaces (+36.9%) and Champions (+32.4%), while Travel (-46.4%) and Customer Acquisition (-19.3%) still show negative returns to date.
  • EV/EBITDA valuations (2020) indicated positive performance for all subsectors, with Travel (+ 185.7%), Social Networks & Communities (+24.6%) and Diversified & Portals (+15.8%) experiencing the highest gains from the rebound.
  • EV/Sales valuations (2020) also pointed towards significant upwards trends for all sectors. Travel show the largest increases (+27.4%), followed by Inventory-based E-commerce (+21.2%) and Classifieds (+17.8%).
  • Please note that valuation metrics (EV/EBITDA and EV/Sales) are positively affected by downward adjustments of analysts’ consensus of the companies’ forward-looking financial profiles. This is clearly visible for the Travel space.

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