COVID-19 dominates a lot of the discussion in the latest edition of KPMG’s International Valuation Newsletter (12th edition), published quarterly. This edition examines the effects the pandemic has had on key focus areas of valuation (share prices, analyst consensus forecast estimates as well as beta factors by sector). It also summarizes the key challenges when implementing various valuation approaches in the context of today’s challenging environment.

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: Since the massive drop in stock prices in the first quarter of 2020, all indices taken into consideration have since increased, regaining part, but not all, of the value lost;
• EURO STOXX 600 sector multiples: Valuation multiples have decreased across all sectors;
• Current risk-free rates for major currencies: Interest rates fall again, with Germany experiencing negative interest rates again for the first time since Q3 2019; and
• Country risk premiums: There are varying trends for country risk premiums, with China and Russia showing little movement since December 2019, while Brazil and India have increased.

The full issue is available if you click here.