A&M Germany Valuation Insights highlights notable shifts in
pricing dynamics and their influence on asset valuations.
The price for taking on equity risk in Germany has fallen
sharply over the past three quarters, driven primarily by three
factors: a higher risk-free rate, rising market capitalization
across CDAX constituents, and downward revisions to consensus
earnings forecasts.
On a year-over-year basis, multiples diverge across the CDAX:
Industrial heavyweights drive significant multiple expansion, while
consumer goods companies remain under structural pressure.
In global comparison, US companies continue to trade at a
premium to their European counterparts, supported by stronger
profitability and more robust growth expectations. Looking at LTM
trading multiples, S&P 500 firms consistently outpace those in
the S&P Europe 350. However, this divergence does not uniformly
extend to M&A transactions, where deal pricing varies
considerably by industry across
