• Out of Home Advertising Values June 2019

    Insider was asked about Out of Home values.   Insider has seen average values of 4-6 times billboard revenue and 8-14 times billboard cashflow during a 30 year career lending to Out of Home.

    The three US public Out of Home advertising companies had a mean gross value of  5.1 times revenue and 16.7 times cashflow (EBIDTA) as of July 8, 2019.

    The cashflow multiple for the public companies is high because it is based on EBIDTA (revenue less all direct corporate expenses and overhead).  Most private transactions are based on billboard cashflow (revenue less only direct operating expenses).  Billboard cashflow is higher than EBIDTA so an EBITDA multiple will always be higher than a billboard cashflow multiple.

    Max Drachman said this on Billboard Insider’s June 19 podcast

    What can you say about valuations?

    On the $250 million in deals we did last year most of them fell between 8 and 12 times billboard cashflow.  We did several deals below that and we did a couple deals above that. 

    Paul Wright of Signvalue had this opinion on Billboard Insider’s May 8 podcast:

    Am I right that multiples are 10-12 times cashflow (EBIDTA)?

    AdvertisementYou are right…Our average is 10.5 or 11 and in term of revenue multiples I think we’re in the 5 to 5.5 times range…During the last recession we saw a spike in multiples.  We were looking at lower revenues and lower cashflows and buyers were anticipating that to be a temporary thing.

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