Do you incorporate macroeconomics into decision-making?
Do you consider where we are in the economic cycle when deciding to proceed with a deal? Do you adjust your valuations (either the multiple or forward earnings) with this context?
Post a question, deal, job, etc...
Make a post...
by a searcher
from London School of Economics and Political Science, University of London
in London, UK
in London, UK
7mos ago
Share
2 Likes
329 Views
Loading...
reply
by a searcher
7mos ago
from University of California, Los Angeles in Los Angeles, CA, USA
from University of California, Los Angeles in Los Angeles, CA, USA
I do take macroeconomics when looking at particular deals, I think it's very relevant in particular if they have exposure to tariffs, international trade, government funding, etc. There is a lot of uncertainty and that affects the way I value the companies.
reply
by a searcher
6mos ago
from London School of Economics and Political Science, University of London in London, UK
from London School of Economics and Political Science, University of London in London, UK
Thanks for the input here guys. Finding it hard to underwrite last year or two earnings for companies we look at as the current and near forward view on the economy is deteriorating. Therefore, particularly cyclical companies, need to have either earnings projection or multiple reduced to reflect this (possibly both).
More on Searchfunder
Loading...