This is Incwert’s fifth edition of India Equity Risk Premium study. Based on the current market conditions, we recommend India ERP of 7.50% ( 7.00% and 8.00% being the upper and lower limit of the range, respectively) beginning April 2023
This is the third edition of Incwert’s Volatility Study, assessing the quantum of volatility in the asset prices differentiated by size based on the analysis of indices and listed companies in India.
We observe an increase in the volatility band for the micro enterprises to 65-70% compared to 60-65% during 2021. The volatility band of micro-enterprises may of significance for capturing the risk factors in privately held companies and start-ups.
We are pleased to release the third edition of Incwert’s holding company discount (“HoldCo Discount”) study 2022, based on the analysis of select listed holding companies across major sectors in India.
We observe that the median HoldCo discount in FY22 is approximately 71 per cent across the major listed holding entities in India.
The median HoldCo discount expanded during the COVID-19 period due to the volatility spillovers in the market.
We are pleased to release the first edition of Incwert’s Purchase Price Allocation Study in India covering the financial years 2020, 2021 and 2022. We have compiled the study after analysing public filings for 124 completed transactions in FY2020, 75 completed transactions in FY2021 and 141 completed transactions in FY2022. We have summarised the results by the class of intangible, size of the transaction, rate of occurrence of intangibles within the industry, contingent consideration, select key transactions and useful life of the intangibles.
Incwert Size Premium Study 2022 is a comprehensive study of past market data of the companies listed on the National Stock Exchange (NSE) of India from 1995 through December 2021 to analyse the returns that mid-cap, small-cap and micro-cap stocks have generated over the return as predicted by capital asset pricing model (CAPM)