Stears Valuation Benchmarks (2024): African Private Markets by EBITDA margins

Introduction

This report is part of the 2024 Stears Valuation Benchmarks, which tracks valuation multiples across the continent’s private capital markets. This edition focuses on trends segmented by company EBITDA margins, analysing implied EV/EBITDA and EV/Revenue multiples from 2020 to 2024 based on a curated set of disclosed private market transactions.

Key Takeaways

1. Valuation premiums concentrate at both ends of the EBITDA margin spectrum. Companies with >40% margins attract the highest median EBITDA multiples (6.95x), reflecting investor preference for highly profitable, efficient businesses with strong cash flow visibility. Low-margin companies (0–20%) also receive relatively strong valuations, as investors selectively back early-stage or strategically positioned firms with turnaround or scale potential.
2. Financial buyers aggressively target high-margin, mid-market real estate firms. In the >40% EBITDA margin range, financial buyers pay a median multiple of 10.39x—nearly double that of strategic buyers. These transactions are concentrated in real estate companies earning $5M–$50M in revenue, signalling a focused