Valuations of German and European banks

BVWireIssue #242-4
November 30, 2022

global business valuation
cost of capital, international business valuation, mergers and acquisitions (M&A), transaction multiples, multiple, equity risk premium (ERP), earnings multiples

The decline in market capitalizations coupled with a positive earnings outlook has led to record levels of the implied cost of equity of 14.8% for European banks and 17.8% for German banks, according to the latest edition of the Alvarez & Marsal’s “Germany Valuation Insights.” The high levels of return on equity have been driven by cost savings and moderate loan losses. Download the full November 2022 report by clicking here.
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