Quarterly Brief - International Valuation Newsletter 2021 - Q3

Valuation trends and practices

Valuation trends and practices

Valuation Newsletter

Goodwill impairment in light of COVID-19

The COVID-19 pandemic has placed an unprecedented burden on our global economy. Unlike other crises we have faced in the past decades, COVID-19 has caused fundamental disruptions in global supply chains and will have a lasting impact on consumer behavior. As we approach 2022, we may now begin to assess the impact these remarkable pressures have placed on businesses and their expectations for the future.

In this edition of our KPMG´s Quarterly Brief - International Valuation Newsletter, we examine 2020/2021 and observe what has happened through the lens of goodwill impairment in Europe and we explore the following questions:

  • What is the broader impact of COVID-19 on goodwill impairment?
  • How do the levels of goodwill impairment compare to the 2008 global financial crisis and the 2012 European debt crisis?
  • What has been observed at the sector level?

In addition, we share with you our summary of key capital market data such as index performance, sector multiples, risk-free rate for Austria, equity risk premium for Austria as well as country risk premiums and inflation adjusted risk-free rastes for the BRICS countries.