LATEST NEWS

Discount rate update Dec 2018

DECEMBER 2018 DISCOUNT RATE UPDATE

The overall cost of capital remains stable

Our latest update on how to assess your discount rates identified that:

⬧ Market indices have fallen due to a combination of lower growth expectations and a higher implied equity market risk premium, offset to some extent by a lower risk free rate.

⬧ With a higher market risk premium, the cost of capital for companies in lower beta industries will decrease whereas discount rates for higher beta companies will increase.

⬧ Credit spreads have widened with the overall cost of borrowing increasing (for large businesses in particular).

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If you would like to discuss discount rates, impairment, or any other valuation related matter, please feel free to contact us.

The Leadenhall Team

OTHER NEWS

Discount Rate 31 Dec 2023

Market Discount Rates – 31 December 2023

Optimism around the easing of inflation and potential interest rate cuts led to a rally in equity markets towards the end of December 2023. With markets continuing to fluctuate significantly, the selection of a reasonable discount rate remains a key consideration, whether for the purpose of financial reporting or for any valuation analysis.

Discount rate September 2023

RISING MARKET DISCOUNT RATES

Markets have declined over the last quarter as persistent inflation and the potential for further rate rises continue to weigh on the ASX 200. These fears have seen a rapid increase in government bond yields over the last month. With market conditions continuing to evolve rapidly, we have provided an update on our assessment of discount rates as at 30 September 2023.

Simon Dalgarno celebrates 25 years

25 Years at Leadenhall: Simon Dalgarno celebrates

After 25 years at Leadenhall (and in the valuation profession) Simon Dalgarno was lucky enough to have the entire month of May off as leave. During his time off, he went on a pilgrimage – which was both professional and personal.