Average exit valuation multiples (price/sales) of private payments companies have bumped up since 2010, while median exit valuation multiples have stayed level.
Since 2007, the payments space has seen strong exit activity from firms specializing in money transfer services to transaction processing to mobile payments. And the range of exit valuation multiples for private payments companies varies widely as well from going from 0.41x at the very low end to a lofty 240.0x. Over this period, the average price/sales (aka P/S or price/revenue) multiple has stood at 22.6x and the median at 5.3x. (Note: the underlying transaction level data is available on CB Insights using valuation multiples search).
More recently, average payments P/S multiples have risen from 17.6x between 2007 and 2009 to 28.1x since 2010. Interestingly, the median exit valuation multiple has held at 5.3x over both periods. The chart below shows the distribution of exit valuation multiples in the payments market since 2007.
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
- Patent Analytics to see where innovation is happening next
- Company Mosaic Scores to evaluate startup health, based on our National Science Foundation-backed algorithm
- Business Relationships to quickly see a company’s competitors, partners, and more
- Market Sizing Tools to visualize market growth and spot the next big opportunity