GlobalData has now transitioned itself into an integrated, multi-platform provider of business data. The FY2016 results are in many respects, the first full year in the new format with GlobalData trading as one global business. At the same time as rebranding and integrating core data platform acquisitions, GlobalData has delivered double-digit organic revenue and EDITDA growth. It is now well positioned to leverage sales across a global geographic platform and continues to invest accordingly. The business is evolving rapidly but the fundamentals remain the same. The business generates significant and recurring cash returns from the provision of proprietary content to large national and international clients. It is scalable, recession-resistant and has high barriers to entry.
The FY2016 results were ahead of our expectations and the outlook is positive. The group announced constant currency revenue growth of 61.7% of which 41.5% was due to the first time contribution of the healthcare data assets acquired during the year and the remainder was from the annualization of 2015 acquisitions and organic growth in the legacy businesses. The strong organic revenue growth during the year was in part due to a reversal in the decline of several of the acquired businesses, by new management. We believe that the Group can generate organic revenue growth of between 5 and 10% per annum from its current portfolio of assets which will be enhanced by further bolt-on acquisitions.
Adjusted EBITDA increased by 74.2% in constant currency terms despite the additional costs of integrating the acquisitions. We expect EBITDA margin to continue to improve rapidly from the current level of 20.9% to over 25% in the medium term. The group has set out its dividend policy with a base dividend for FY2016 of 6.5p, followed by growth in-line with earnings. Investment in marketing will improve organic growth and the innate cash generation of the business will underpin the new dividend policy. Further margin improvement together with revenue growth leads to our estimate of 3 year GAGR earnings growth in excess of 20% per annum and positive net cash balances by FY2018.
On our estimates, the shares are trading on a prospective PER multiple of 42.3x falling to 35.2x in FY2018. This is in-line with the top of the range for the global peer group (42.1x in 2017 and 34.8x in 2018). However, the GlobalData businesses are at an early stage of sales and margin development and we believe they have long-term growth potential well above the peer group average. Therefore, we would argue that a premium is justified. Perhaps more relevant, is the fact that good quality data assets are in short supply and there is significant M&A activity. Recent deals have been at an EV/EBITDA exit multiple of over 40x. This would equate to a GlobalData share value of 792p/share, 34% ahead of the current share price of 592.5p.