Valuation News - January 2024

In the current 40th issue of Valuation News, we first summarise the results of the current Cost of Capital Study 2023. Among other things, this highlights the influence of increased uncertainties and accompanying interest rate and inflation developments on business models, planning calculations and capital costs based on industry-specific analyses. The second article explains the consideration of debt in the context of company valuation and presents the new valuation note 1/2023, which distinguishes between the valuation principles for companies with low and normal levels of debt and special features in the valuation of highly or excessively indebted companies. Finally, we look at the country risk premium that is often applied when deriving the cost of capital and discuss the conceptual recognition of different risks on the one hand and the practicable empirical measurability of any risks on the other.