Global BV News: Highlights of KPMG’s Q1 valuation brief

BVWireIssue #209-3
February 19, 2020

global business valuation
business valuation profession, international business valuation

Heightened tensions in the Middle East, the UK leaving the EU, and signs that the trade dispute between China and the U.S. is subsiding are all addressed in the latest edition of KPMG’s International Valuation Newsletter (11th edition), published quarterly. There is also an update on recent capital market data relevant to any valuation analysis. Highlights of the report’s market update are:

  • Major stock market performances: All indices gained on a quarterly and yearly basis, with the Nasdaq outperforming all (+12.2% on a quarterly and +35.2% on a yearly basis);
  • EURO STOXX 600 sector multiples: Valuation multiples of most sectors have risen over the past four quarters; and
  • Current risk-free rates for major currencies: Interest rates rose in Q4 2019 for the first time since Q3 2018 for all areas except Switzerland.

The report also focuses on the valuation of ships and points out that, because shipping companies may be making significant changes to their fleets, the long-term asset value (LTAV) method is “more relevant than ever,” the report says.

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