During the credit crisis of 2007 to 2009, we had observed that equity valuations based on market multiples in our home market (the Netherlands) consistently differed from valuations based on discount rates and forecasts (also known as discounted cash flow or DCF). We looked into this and discovered that discount rates appeared low. One of the discount rates component, equity risk premium (ERP), was not properly capturing market risk. This problem persists today in some countries and regions.
ERP’s that do not properly capture market risk can lead to mispriced investments and unsupportable valuation opinions. To solve this problem, we began investigating ERP’s in 2012 and continue to develop and refine our methods today. Our ERP findings are available in our equity risk premium research report series, currently available for the United States and the Benelux (Belgium, Netherlands and Luxembourg) region via the Research Reports section of our website and on select research platforms.
AN Valuations is proud to announce that our equity risk premium research reports are now available on FactSet. Entitlement requests for real-time access can be sent to firstname.lastname@example.org. FactSet customers can also purchase our research reports directly on an embargoed basis.
About AN Valuations
Clients around the world trust AN Valuations for valuation advisory services. We help stakeholders in a broad range of industries with company valuations ranging from micro-cap to large-cap.
AN Valuations assists companies with valuations of businesses, financial instruments, derivatives, personal property and intellectual property (such as brand assets and patents) for transaction, fiscal, legal and accounting purposes, particularly in cross-border situations. Through our bespoke approach and global network, we customize teams to the needs of our clients.
For more information regarding purchase price allocations or other services provided by AN Valuations, do not hesitate to contact Andrew Pike at email@example.com or at +31 70 221 0058.