EACVA Newsletter May 2018

With our EACVA-Newsletter we want to share current economic data/sources and interesting publications on business valuation.

Economic Data

Global

• IMF
  World Economic Outlook, April 2018 (Cyclical Upswing, Structural Change)
  … This new World Economic Outlook report projects that advanced economies as a group will continue to expand above their potential growth rates this year and next before decelerating, while growth in emerging market and developing economies will rise before leveling off… (Link)
• The World Bank
  Global Economic Prospects, January 2018
  Including global and regional outlooks, four topical issues (e.g. with the benefit of hindsight: The impact of the 2014-26 oil price collapse) and economic data. (Link)

Europe

• European Commission
  Economic performance and forecasts
  Economic performance by country (Link)
• European Central Bank
  Economic Bulletin, Issue 3/2018
  Update on economic and monetary developments (Link)
• CESifo Group
  EEAG Report on the European Economy 2018
  Analyses key economic policy issues of common European concern. (Link)

Netherlands

• De Nederlandsche Bank
  DNB’s forecasts for the Dutch economy
  Economic Developments and Outlook – December 2017 (Link)

Publications

• Going to Pieces: Valuing Users, Subscribers and Customers
  Aswath Damodaran, New York University – Stern School of Business, May 2018
  … However, businesses are not only increasingly marketing themselves to investors on the numbers of users, customers and subscribers that they have, but they are building their business models around these constituent parts. While many of them contend that conventional valuation approaches don’t work in this new world order, we disagree and this paper attempts to extend intrinsic value and pricing approaches to value a user, subscriber or member, using Uber, Amazon Prime, Spotify and Netflix as examples… (Link)
• Terminal Value
  Doron Nissim, Columbia University – Columbia Business School
  Columbia Business School Research Paper No. 18-12, December 2017
  This study provides evidence relevant for estimating and evaluating the terminal value term used in DCF valuation. Consistent with common practice, EBITDA based exit multiples dominate those based on net operating profit after tax (NOPAT; essentially EBIT×(1-t)) or net operating assets (NOA; approximately equal to invested capital). However, both NOPAT and, especially, NOA provide incremental information about the terminal value beyond EBITDA… (Link)
• Intangible Asset Market Value Study?
  Cate Elsten, Ocean Tomo / Nick Hill, Ocean Tomo
  les Nouvelles – Journal of the Licensing Executives Society, Volume LII No. 4, September 2017
  Ocean Tomo has released an update to the Annual Study of Intangible Asset Market Value. The study examines the components of market value – specifically, the role intangible assets play in corporate market caps across a range of indexes around the world. Ocean Tomo believes intangible asset market value (“IAMV”) is a strong reflection of innovation in the greater economy… (Link)