Sustainable Valuations

Dealing with wars and other exogenous shocks: Number distortions & firm valuations

Major external shocks can leave clear marks on corporate financials, making valuations significantly more challenging. This becomes particularly difficult when such shocks are not purely one-off events, but may reasonably recur in the future. Recent geopolitical developments in the Middle East illustrate this issue. Armed conflict, such as the current war involving Iran, has the […]