In the December issue of Valuation News, we look at the results of the current Cost of Capital Study, discuss the implications of ESG influences on the planning horizon in the valuation calculus and provide insight into the use of earn-outs and option rights within purchase price agreements.
The first article summarises the results of the Cost of Capital Study 2022. Under the motto "Inflation at record levels - what does this mean for company valuations", it shows the influence of inflation on business models, planning calculations and capital costs. We then discuss the question of what influence ESG data has on business models and planning horizons in valuation calculations. The third article looks at the use of earn-out clauses and option rights to optimise company purchase prices in an economically unstable environment.