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Valuation Market Essentials Switzerland - what key highlights did we observe in Q2 2023?
In brief
- Continuing from the previous two quarters, no new company was listed on the Swiss SIX stock exchange due to volatile market conditions.
- Compared to Q1 2023, the median EBITDA trading multiples increased for E&U, IG&S and MT&T, while they decreased for the rest of the sectors.
- During Q2 2023, the European M&A market saw a 22% increase in the total number of transactions, reaching 137 compared to 112 in the previous quarter.
- The P/E ratio increased for retail and cantonal banks. Global and private banks as well as insurance companies experienced a decline in the P/E ratio from the previous quarter.
- Compared to the previous quarter, the spot rates of USD and EUR 10-year government bonds experienced an uptick, reaching 3.8% and 2.5%, respectively, in Q2 2023. However, the CHF 10-year government bond declined to 1.0% compared to the previous quarter.
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 Leontyeva for their valuable contributions to this article.
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