IT Services valuation multiples
Worldwide, the median listed IT services company was valued at 10.8x EBITDA and 18.1x normalised earnings at 30 September 2026. By region, the median was 11.6x in the United States, 9.0x in Europe, 8.2x in Japan and 20.8x in Emerging Asia.
Global 356 listed IT services companies at 30 September 2026
median
median
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*Excludes companies with negative EBITDA. **Excludes companies with negative normalised earnings. ***Excludes companies with negative operating profit (EBIT). How the figures are built
| EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|
| Region | Companies | Median | Aggregate | Median | Aggregate |
| Global | 276 | 10.8x | 11.8x | 18.1x | 23.5x |
| United States | 21 | 11.6x | 11.0x | 13.1x | 20.7x |
| Europe | 49 | 9.0x | 13.4x | 19.3x | 32.9x |
| Japan | 87 | 8.2x | 12.1x | 16.7x | 21.9x |
| Emerging Asia | 111 | 20.8x | 14.2x | 21.7x | 29.9x |
Companies: those in the EV/EBITDA median. Median: the typical IT services company. Aggregate: the industry as a whole, total value over total revenue, earnings or book value, with larger companies weighing more and loss-makers included. In Europe and Japan the larger companies trade on higher multiples than the typical one, so the aggregate sits above the median. In Emerging Asia it is the other way round, and the aggregate sits below the median. n/m: not meaningful, or too few companies. How both are calculated
Valuation multiples by sector and region
What listed companies trade on worldwide, by region and sector, in ten pages. It may be shared and quoted with attribution to Siblis Research.
- Market multiples for eight regions: EV/EBITDA, P/E, EV/Sales, P/B
- 13 sectors by region: EV/EBITDA and P/E
- The most and least expensive industries
- Twelve quarters of history
| Multiple | Global | United States | Europe | Japan | Emerging Asia |
|---|---|---|---|---|---|
| EV/EBITDAEnterprise value to EBITDA; share-based pay counted as an expense. The key multiple for IT services companies. | 10.8x | 11.6x | 9.0x | 8.2x | 20.8x |
| P/ENormalised earnings: one-off items removed. | 18.1x | 13.1x | 19.3x | 16.7x | 21.7x |
| EV/EBITEnterprise value to operating profit, after depreciation. | 14.4x | 11.4x | 15.1x | 9.5x | 22.3x |
| P/FCFMarket value to free cash flow. | 16.3x | 15.4x | 10.9x | 15.5x | 27.8x |
| Ratio | Global | United States | Europe | Japan | Emerging Asia |
|---|---|---|---|---|---|
| Revenue growth | 7.2% | 5.9% | 5.7% | 9.4% | 5.6% |
| Gross margin | 26.0% | 35.1% | 23.3% | 30.3% | 21.8% |
| EBITDA margin | 11.9% | 15.1% | 12.7% | 13.9% | 7.3% |
| Free cash flow margin | 6.8% | 6.8% | 8.3% | 8.9% | 3.7% |
Each ratio is the median of the companies that report the figure. Revenue growth compares the last twelve months with the twelve months before.
Global
- International Business Machines CorpUS
- Accenture plcUS
- Tata Consultancy Services LtdIndia
- Nebius Group NVNetherlands
- CoreWeave IncUS
of 356 companies
United States
- International Business Machines CorpUS
- Accenture plcUS
- CoreWeave IncUS
- Cognizant Technology Solutions CorpUS
- VeriSign IncUS
of 26 companies
Europe
- Nebius Group NVNetherlands
- Capgemini SEFrance
- Indra Sistemas SASpain
- Computacenter plcUK
- Bechtle AGGermany
of 60 companies
Japan
- Fujitsu LtdJapan
- NEC CorpJapan
- Nomura Research Institute LtdJapan
- TISI IncJapan
- NS Solutions CorpJapan
of 100 companies
Emerging Asia
- Tata Consultancy Services LtdIndia
- Infosys LtdIndia
- HCL Technologies LtdIndia
- DCI Indonesia Tbk PTIndonesia
- Wipro LtdIndia
of 158 companies
Subscribers get the figures of all 356 companies at 30 Sep 2026, and of every company in earlier quarters, delisted ones included, with their key multiples, size band, last reporting date and data flags. Every median and aggregate can be checked company by company, and every company figure traced back to that company's own filings.
| Sub-industry | Covers | EV/EBITDA | P/E |
|---|---|---|---|
| IT Consulting & Services | IT consulting, systems integration, managed IT services | See plans | See plans |
| Internet Infrastructure & Hosting | Hosting, CDN, domain, cloud communications infrastructure | See plans | See plans |
Global medians, 30 Sep 2026
Global median EV/EBITDA, 12 quarters
IT Services in the full data
Two markets, two price levels
IT services is valued on EBITDA: the business is people and contracts, most companies are profitable, and 276 of the 337 companies in the statistics have a meaningful EV/EBITDA. The regions sit far apart. Emerging Asia's median is 20.8x, against 11.6x in the United States, 9.0x in Europe and 8.2x in Japan. Of the companies in the statistics, 109 are listed in China and 95 in Japan, so the global median of 10.8x is a blend of two very different markets.
Lower than three years ago in every region
The global median has moved from 12.2x in Q4 2023 to 10.8x, with a low of 9.8x in Q1 2026, and every region's median is lower than it was at the start of the period. The aggregate has fallen with it, from 13.7x to 11.8x.
Margins do not explain the Asian premium
Emerging Asian IT services companies have the lowest median EBITDA margin of the four regions, 7.3%, against 15.1% in the United States and 13.9% in Japan, and the lowest median free cash flow margin, 3.7%. The premium there is a market premium, not a margin premium, and a peer group for a target outside the region should not include it.
Size
Small caps (USD 300m–2bn) trade at a median 14.4x EBITDA worldwide, against 10.6x for companies above USD 10bn; in Emerging Asia the small-cap median is 32.3x. A large consulting or outsourcing target belongs with the large-cap figure, not the industry median.
What EV/EBITDA multiple do IT services companies trade at?
The median listed IT services company traded at 10.8x EBITDA (EV/EBITDA) at 30 September 2026, across 276 companies above USD 100m; the aggregate was 11.8x. United States 11.6x, Europe 9.0x, Japan 8.2x, Emerging Asia 20.8x.
What is the median P/E of IT services companies?
18.1x at 30 September 2026, across 207 companies; the aggregate was 23.5x.
Should a valuation use the median or the aggregate?
The median, with the 25th and 75th percentiles of a peer group close to the target in sub-industry and size. The aggregate describes the industry as an investor holding all of it would see it, and it is pulled towards the largest companies.
Do these figures include private IT services companies?
No. They cover listed companies with a market value above USD 100m. Data for US companies of USD 25–100m is available to subscribers as a separate universe.
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Companies with a market value above USD 100m whose main business is consulting, systems integration, outsourcing and data-centre and cloud infrastructure services, listed on the largest stock markets in every region. Delisted companies are included for the dates they were listed, so past figures carry no survivorship bias.
Financial statements come from official filing databases where they exist, such as SEC EDGAR in the United States and EDINET in Japan, and otherwise from the companies' own published reports.
356 IT services companies at 30 September 2026. The number changes every quarter as companies list, delist or change industry. Companies with accounts more than about nine months old, and holding companies whose results are mainly revaluations of their investments, are left out.
The typical company: each counts once, from at least five values. A company with negative EBITDA, operating profit or normalised earnings is left out of the median of that multiple, as are multiples above 50x for EV/Sales or 100x for earnings multiples. So each median has its own number of companies.
The industry as a whole: total value over total revenue or earnings in US dollars, each company weighted by its free float, loss-makers included. Where one company is more than half the industry's value, the aggregate mostly describes that company; use the median.
Each figure uses only the financial statements public on the valuation date, over the last twelve months. Later restatements never change it.
Market value plus debt, preferred equity and minority interests, less cash. Lease liabilities are included on the IFRS 16 basis.
Restructuring, deal and litigation costs are added back; share-based pay stays an expense. Adjusted EBITDA adds share-based pay back as well.
Net earnings with one-off items removed, such as impairments, restructuring costs and disposal gains. The P/E uses these, never reported earnings.
Cite this page
Siblis Research (2026). IT Services Valuation Multiples [Data set]. Valuation date 30 September 2026. siblisresearch.com/valuation-multiples-by-industry/it-services/
Charts on this page may be reproduced with attribution to Siblis Research and a link to this page.
@misc{siblis_it_services_multiples,
title = {IT Services Valuation Multiples},
author = {{Siblis Research}},
year = {2026},
note = {Valuation date 30 September 2026},
url = {https://siblisresearch.com/valuation-multiples-by-industry/it-services/}
}