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Valuation Market Essentials Switzerland - what key highlights did we observe in Q4 2022?
In brief
- Over the past year the spot rates of the USD, EUR and CHF 10-year government bond increased significantly reaching 3.9%, 2.6% and 1.6% respectively at the end of Q4 2022. This is the highest level over the past five years for all rates except USD which reached it’s 5 year high in October 2022.
- The EBITDA trading multiples (median values) increased for all sectors except for CC&M, which decreased slightly.
- The P/TB of global and private banks as well as the insurance companies increased as compared to the previous quarter. Especially the P/TB ratio for insurance companies increased significantly in the past year, reaching 2.0x compared to 1.3x in Q4 2021.
- The total number of transactions in the European M&A market decreased by 20% to 147 in Q4 2022 as compared to 183 in the previous quarter.
- During Q4 2022, the average deal volume increased to USD 762m, which is a significant increase as compared to the previous quarter but still lower than in Q2 2022.
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
Summary
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Acknowledgements
We thank Michael Keck, Alex Benhauresch and Elizaveta Leontyeva for their valuable contributions to this article.
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