Market Discount Rates – 31 December 2023

Discount Rate 31 Dec 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.

RISING MARKET DISCOUNT RATES

Discount rate September 2023

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.

Discount rate update – 30 June 2023

Discount rate update 30 June 2022 article

Inflation has slowed but economic uncertainty continues to drive market volatility, with growth in the Australian economy and household spending slowing. The selection of a reasonable discount rate therefore remains a key consideration, whether for the purpose of financial reporting or for any valuation analysis.

Discount rate update – March 2023

Market discount rate March 2023

Markets have been volatile over the last month with uncertainty surrounding the global banking system and the broader economy, alongside inflation and recession concerns. With market conditions continuing to evolve rapidly, we have provided an update on our assessment of discount rates as at 31 March 2023.

Discount rate update – December 2022

discount rate update 30 December 2022

1. Market discount rate update – introduction Click to download PDF version Inflation and recession concerns continue to drive market volatility, with a deteriorating outlook for the global economy towards the end of December 2022. The selection of a reasonable discount rate therefore remains a key consideration, whether for the purpose of financial reporting or […]

Leadenhall celebrates 40 years of business valuation excellence

Leadenhall 40 years celebration, about Leadenhall

40 years of business valuation excellence Leadenhall marked 40 years of providing business valuation services with an event in Sydney and Adelaide late last year. Held at The Mint (part of Museums of History NSW), the Sydney event in November hosted around 50 attendees for cocktails and canapés as we reflected on four decades of […]

Discount rate update – 30 June 2022

Discount rate update article

1. Market discount rate update – introduction Click to download PDF version Global recession fears, alongside rising inflation and interest rates, have fuelled market volatility in recent  months, driving a decline in markets towards the end of June 2022. The selection of a reasonable discount  rate therefore remains a key consideration, whether for the purpose […]

Discount rate update – 31 March 2022

Discount rate march 2022

Rising market discount rates Click to download PDF version Markets have been volatile over the last three months, with the anticipated COVID-19 recovery being hindered by the conflict arising in Ukraine and coinciding with a  rapid rise in government bond yields around the world. With market conditions  continuing to evolve rapidly in response to these […]

Discount rate update – 31 December 2021

Update on Market Discount Rates as at 31 December 2021 Click to download PDF version With the uncertainty created by COVID-19 continuing to impact businesses and markets, the selection of a reasonable discount rate remains a key consideration, whether for the purpose of financial reporting or for broader valuation requirements. The following chart presents a […]

Discount rate update – September 2021

Discount rate update, latest news

Update on Market Discount Rates as at 30 September 2021 The market was relatively flat over the quarter to 30 September 2021 with the ASX rising only 0.3% since June 2021 despite stronger earnings growth expectations. With the risk-free rate remaining unchanged, this implies an increase in the EMRP and market discount rates over the […]