The valuation multiples of UK-listed companies rose in the third quarter of 2026 to recover some of the losses experienced since the start of the year, according to new analysis from international advisory firm Interpath. However, in the US, valuation multiples retreated following the September rate hike and as closer scrutiny of business models following early enthusiasm for AI and infrastructure assets starts to bite.
Interpath’s quarterly Valuation Multiples by Industry report summarises median valuation multiples of UK and US publicly listed companies by sector and industry. Interpath’s latest quarterly review considers how valuation multiples evolved over the course of Q3 2026, based on prevailing market data and historical trailing last-twelve-months (“LTM”) financial data.
UK-listed valuations rally with industrials leading the charge
The latest analysis reveals that median EV/EBITDA multiples rose during the latest quarter in two thirds (18 of 27) of UK non-financial industries covered by the report. The recovery follows notable falls in UK multiples during the first half of 2026.
At a sector level, the report found that UK Industrials experienced strong gains with an increase in multiples across seven of its eight-sub sectors, reversing much of the ground lost in H1 2026, including gains for Machinery of 1.73x, Professional Services 1.72x and Commercial Services 1.22x, albeit Machinery and Commercial Services remained lower than at the start of the year.
While the average EBITDA multiple in the UK Technology industry was up YTD, there was mixed performance at a sector level. For example, IT Services rose 3.18x during Q3, resulting in it being 3.85x higher year to date. However, although Software gained 1.29x during Q3, the industry remained 2.60x below its start-of-year level.
Noah Ojetola, Managing Director in Interpath’s Valuations practice, said: “UK-listed valuations are heading back in the right direction, but we should remind ourselves that this isn’t a complete recovery and there is much more road ahead. Median multiples for more than half of the market are still lower than at the start of the year. The final quarter of the year will be a real test to see how robust that recovery is. Given such persistent inflation and uncertainty in international trade and geopolitics, we could see higher bond yields raising discount rates and weigh on valuation multiples once again.”
US withstands full retreat despite slip in listed valuations
In the US, despite a stronger start to the year, during Q3 EBITDA multiples fell in three quarters (46 of 61) of the non-financial industries covered by the report. In particular, US Industrials fared significantly worse than their UK counterparts, with 10 of the 11 sectors experiencing declines in EBITDA multiples, including 3.64x for Aerospace & Defence and 3.60x for Construction & Engineering.
Meanwhile, with regards to Technology, US markets moved from early-year enthusiasm for AI and infrastructure to closer scrutiny of funding costs, cash generation and growth durability. US Technology’s pullback was especially pronounced in Semiconductors and Semiconductor Equipment, whose median EBITDA multiple fell 14.92x during Q3. That followed a 24.02x rise in H1, leaving its multiple 9.10x higher year to date. The US Information Technology sector was not uniformly weaker during Q3 – even though the sector had the steepest average Q3 decline (down 2.99x), the average YTD change was positive (up 2.20x), with IT Services gaining 2.32x over Q3.
Commenting on the latest figures from the US, Noah Ojetola, added: “On paper, US valuations had a poor quarter, but when taking a step back, they remain largely ahead when compared to the turn of the year. US valuations will be sensitive to every manner of the global factors that are testing confidence, but there’s also the US mid-terms and forthcoming company earnings announcements which could be a turning point in shifting market expectations in either direction.”
You can download the full analysis here.
