When Hammons Holdings took full ownership of Sydney Zoo in November 2025, the deal came with more than 2,000 animals and a familiar post-acquisition task: putting a clear value on the assets that make the business work.

Inflation remains high, although there are signs that inflationary pressures are moderating following three consecutive increases to the cash rate target since December 2025. Global energy supply continues to be impacted by the conflict in the Middle East, with resolution remaining uncertain. The selection of a reasonable discount rate therefore remains a key consideration, whether for the purpose of financial reporting or for any valuation analysis.

Markets have been volatile over the last few months as conflict in the Middle East has led to substantial increases in oil prices and higher inflation expectations, at least in the near-term. With government bond yields at their highest levels since 2011 and market conditions continuing to evolve, we have provided an early warning on our assessment of the equity market risk premium (EMRP) as at 31 May 2026 for Australia.