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Valuation Market Essentials Switzerland – what key highlights did we observe in Q4 2023?
In brief
- Compared to the previous quarter, the spot rates of 10-year government bonds for USD, EUR and CHF have decreased to 3.9% (from 4.6%), 2.1% (from 2.9%) and 0.7% (from 1.1%), respectively, in Q4 2023.
- During Q4 2023, the European M&A market saw a 27% increase in the total number of transactions, reaching 151 compared to 119 in the previous quarter.
- Two new companies were listed on the Swiss SIX stock exchange, breaking the trend of the past four quarters with no new listings.
- Compared to Q3 2023, the median EBITDA trading multiples decreased in all sectors in Q4 2023, except for the MT&T and IG&S sectors.
- The P/E ratio decreased for retail and cantonal banks as well as insurance companies compared to the previous quarter, while it remained constant for global and private banks. Meanwhile, the P/TB ratio increased for global and private banks but decreased for retail and cantonal banks as well as insurance companies.
In times of economic turbulences, we deem monitoring the developments of the most recent market data to be crucial to understand their impact on the key parameters used in corporate valuations. In our quarterly publication Valuation – Market Essentials Switzerland, we present the key highlights of the most recent market developments. The publication covers market multiples and cost of capital components per sector for the companies of the Swiss All Share Index (except general financial and real estate companies) as well as relevant macro-economic data used in business valuations.
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Sector abbreviations:
R&CP – Retail and consumer products
E&U – Energy and utilities
IG&S – Industrial goods and services
MT&T – Media, technology and telecommunication
CC&M – Chemicals, construction and materials
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Acknowledgements
We thank Michael Keck, Alex Benhauresch, Jeremy Guttmann and Elizaveta Tarafa for their valuable contributions to this article.
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