42013526 - Horizons - Q4_v04c

HORIZONS | BDO'S GLOBAL VIEWOF MIDMARKET DEAL ACTIVITY 07

In our inaugural issue, we analyzed how fundamental estimates and equity prices moved in opposite directions during April and May of 2020. Many of the graphs in the latest report show that analyst estimates did begin to rebound from the lows at the end of May 2020. However, equity prices have continued to outpace estimates and exacerbated the overall disconnect.

PERCENT CHANGE IN TEV AND EBIT FROM FEBRUARY 2020 TO MAY 2021

Oil & Gas

Insurance

Airlines*

Gaming, Hospitality, Leisure*

Telecommunications

Despite increases in TEV for all but one industry, relatively few observed an increase in both actual EBIT and projected long- term EBIT.

Banks

Healthcare - Provider

Healthcare - Life Sciences

Restaurants

Distribution

TEV

2020 EBIT

Long-term EBIT

Retail - Consumer Staples

*Full range not shown

Construction - Multi-Family

Healthcare - Medical Devices

Healthcare - Payer

Asset Management

Construction - Commercial

Construction - Single-Family

Manufacturing

Tech. - Software & Services

Retail - Discretionary & Luxury

Media & Entertainment

Tech. - Semiconductors & Products Tech. - Hardware & Equipment

Retail - Online

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

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