Valuation gap widens between private and public equity

Chart of the Week

Jan 30, 2026

2 MIN READ

Valuation gap widens between private and public equity

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As public markets grow more expensive, U.S. buyout valuations offer compelling value.

authors

Christopher Bole

Vice President, Financial Writer

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Public and private U.S. equity valuations (Trailing EV/EBITDA multiples)

Line chart showing valuations (trailing enterprise value/earnings before interest, taxes, depreciation, and amortization (EBITDA)) across public and private equity markets. Private market valuations offer compelling value.

Source: Bloomberg, Pitchbook, as of September 30, 2025, latest data available. Public multiples represent annual averages of monthly data. Valuations metric refers to enterprise value (EV) to earnings before interest, taxes, depreciation, and amortization (EBITDA).

Today’s chart of the week highlights a key trend impacting private markets today. Explore this insight and more in our 2026 private markets outlook: Forged, not found: Selectivity shapes outcomes as momentum builds.

After three years of private equity lagging tech-driven public markets, today’s entry point in private equity offers compelling value.
Using U.S. buyout funds as a proxy, private equity valuation multiples currently stand at 12.5x versus 16.1x for the S&P 500. Even after adjusting for the elevated valuations of high-flying technology/AI hyperscalers, private equity valuations appear attractively valued relative to the equal-weighted S&P 500 of 13.3x.¹
A healthy economic backdrop, easing policy uncertainty, and lower rates provide a tailwind to private equity deal activity and performance. But selectivity is increasingly critical as capital has crowded in to the largest deals and funds.
As competition intensifies in large-cap buyouts, alpha opportunities are more likely to be found in lower and core middle markets, where entry valuations are lower and information asymmetries persist.

contributing authors

Christopher Bole

Vice President, Financial Writer

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footnotes + disclosures

Bloomberg, Pitchbook, as of September 30, 2025, latest data available. Public multiples represent annual averages of monthly data. Valuations metric refers to enterprise value (EV) to earnings before interest, taxes, depreciation, and amortization (EBITDA).

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