Nordic Application Software Benchmark Report

Together with our Globalscope partner Silverpeak (UK), we have published the “Q2 2021 Nordic Application Software Benchmark Report”. The report is an updated review of key company valuation metrics in the Nordic, UK, European and US markets. The report reviews the development from 2015 to Q2 2021.

Our data for 345 publicly listed application software companies show that the Nordic software companies in Q2 2021 are valued at a median EV/Revenue multiple of 9.1x, compared to 10.8x in the US and only 4.9x and 4.2x in UK and Rest of Europe.

«Nordic EV/Revenue multiples keep performing significantly higher than UK and rest of Europe, despite a weak growth in Q2 2021. The other regions continue the positive trend from Q1 2021», says Bjørnar Reitan, partner at Karabin Impello.

«Our analysis shows that the Nordic application software companies in Q2 2021 are valued at a median EV/EBITDA multiple of 45,6x, which is more than double of what is observed for the rest of Europe (21.0x). After a correction in Q1 2021, all region multiples except US show a strong return in Q2 2021. UK multiples (32.2x) exceeded US multiples (29.2x) for the first time in years. Nordic EV/EBITDA multiples continue to perform highest of all regions with 34% growth from Q1 2021», says Reitan.

«There are several interesting findings in our report, and I would especially like to highlight the strong and positive development in the number of Nordic software companies. The massive growth of 268 % since 2015 proves that the Nordic market is gradually succeeding in producing highly attractive software companies with an international reach», says Reitan.

«We have chosen to profile one particular Nordic listed company in each report going forward, and in this report, we profile the Norwegian company Mercell Holding which was uplisted from the Euronext Growth trading platform to the main list on the Oslo Stock Exchange (OSE) in July 2021. The company shows strong growth both organic and through several acquisitions during the past couple of years. In Q2 2021, they traded at EV/Revenue 12.0x and EV/EBITDA 247.1x», says Ragna Kristine Randeberg, analyst at Karabin Impello AS.

Impello and Silverpeak will continue to monitor and make visible the development in the Nordic markets on a quarterly basis.

Read the full report here.