18th Edition of our International Valuation Newsletter, Q3 2022

The last couple of months have been dominated by global and regional events that are having multiple and enormous impacts on our society, markets and economy; on our clients; and on each of us at a personal level. We’re seeing increased demand from clients for our services as they seek to make decisions amid forceful and rapidly changing influences. The question of value and price remains at the heart of discussions, while the level of uncertainty is even higher than in the years 2020 or 2021. 

Over the last few years, the focus of our Quarterly Brief has included COVID 19 (twice), ESG and renewable energy. All these topics are still highly relevant today, for sure. In addition, we now face the tragic war in Ukraine, other looming geopolitical tension, continuously disrupted global supply chains and inflation levels not seen for decades in developed countries. With winter soon upon us in the northern hemisphere, we face skyrocketing energy prices due to an expected shortage of gas and electricity, while underdeveloped countries are threatened by food scarcity. The list of dramatic global effects is long, very long.

One thing we learned over the last two to three years is that all the shockwaves we have experienced have affected industries and sectors differently. There is no one-size-fits-all answer to the question of a market-adequate valuation – because there are no stable markets these days.

Acknowledging that any aggregated view misses the specifics and nuances ultimately so important in determining a robust value for an individual company, we attempt to summarize certain key influencing factors to consider in a business valuation. In the main part of this edition of our newsletter, we also take a closer look at some interesting trends in capital market data. With some overlap – but for the sake of consistency – we then provide a summary of recent key capital market data in our well-known format in the final section of this Quarterly Brief.

We wish you all the best in these unpredictable times and look forward to discussing your questions regarding valuation trends and practices.