In this edition of Valuation Insights, we present highlights from the Duff & Phelps 2018 U.S. Goodwill Impairment Study, now in its tenth year, which examines general and industry goodwill impairment trends of more than 8,400 U.S. publicly-traded companies through December 2017.
In our Technical Notes section, we analyze Duff & Phelps’ recent U.S. Equity Risk Premium Recommendation (”ERP”), which increased from 5.0% to 5.5% effective December 31, 2018, and the factors considered in periodic reassessments of the selected ERP and accompanying risk-free rate.
In our International in Focus article, we discuss the Duff & Phelps Transaction Trail 2018 Report, which takes an in-depth look at transaction and capital markets activities, including mergers and acquisitions, private equity and venture capital investments as well as initial public offerings, in Singapore, Malaysia and Indonesia over the course of 2018.
Finally, our Spotlight article reviews new features recently added to the Duff & Phelps Cost of Capital Navigator, the web-based tool that assists valuation professionals in calculating cost of capital. The new features provide significant benefits to Navigator users in the form of additional data, information and enhanced functionality.
In every issue of Valuation Insights, you will find industry market multiples that are useful for benchmark valuation purposes. We hope that you will find this and future issues of this newsletter informative and reliable.
2018 U.S. Goodwill Impairment Study
by Carla Nunes
U.S. Equity Risk Premium Recommendation
by Roger Grabowski
Transaction Trail 2018 Report
by Srividya Gopal, CVA, MRICS, CEIV
Cost of Capital Navigator – New Features
North American Industry Market Multiples
European Industry Market Multiples