This is the second edition of Incwert’s Holding company or “Conglomerate” discount study 2021, based on the analysis of select listed holding companies across major sectors in India.
Assessment of volatility in equity return of enterprises stratified by size
Aiming at readiness for the upcoming Ind AS implementation in the Banking and Insurance sector by drawing references from the US market
Holdco Discount study could be of importance to the valuation professionals when dealing with the question on the quantum of discount to be applied for valuing the holding of a minority shareholder in an entity that is essentially an investment vehicle. The empirical evidence is based on market data which can be considered to be a reliable basis when addressing the holding in a private enterprise which is a conglomerate.
Are valuation principles antagonised by temporal dimensions of interfered risk-free rates in growth-deflated big economies? Read our article to understand how this blip could be adjusted using certain well accepted methods.