Inflation has recently reached multi-decade highs in several countries and regions. Inflationary pressures are not limited to emerging markets, and many developed economies are struggling to keep inflation under control.
In this context, how is the current inflation environment impacting valuations and cost of capital assumptions? Do we need to reconsider long-term growth assumptions in the terminal year of discounted cash flow (DCF)-based valuations? What lessons can we draw from previous business cycles, and how might things be different this time around considering Russia’s war on Ukraine? What other adjustments need to be made to the valuation, and how relevant are these adjustments in hyperinflationary economies?
- Carla Nunes, Managing Director, Office of Professional Practice, Kroll
- Bradford Cornell, Professor of Finance, UCLA
- Alexandre Pierantoni, Managing Director, M&A Advisory, Kroll
- Patrick El Kozah, International Standards Group Manager, KPMG