Interesting U.S. vs. international valuation attribution from this article https://verdadcap.com/archive/explainin ... valuations
P.S.: I'm not sure if I read the chart right. My interpretation is that the headquarters location ("international") is the biggest determinant of valuation, then listing location, then quality, etc. But they seem to provide a different interpretatation - "By far the most significant difference, explaining about half the valuation gap, is the domicile of listing." I'm not sure how they isolate the actual impact of headquarters location in the regression, i.e. the "alpha" of being an international company adjusted for the other listed factors, if that was the goal. I don't see the actual, observed multiples valuation gap (before adjustments or attribution to known factors) listed.
I also gather that with U.S. listed international companies (e.g. ADRs) the full diversification benefit cannot be obtained.
Here https://verdadcap.com/archive/us-except ... ges-abroad is another analysis.
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P.S.: I'm not sure if I read the chart right. My interpretation is that the headquarters location ("international") is the biggest determinant of valuation, then listing location, then quality, etc. But they seem to provide a different interpretatation - "By far the most significant difference, explaining about half the valuation gap, is the domicile of listing." I'm not sure how they isolate the actual impact of headquarters location in the regression, i.e. the "alpha" of being an international company adjusted for the other listed factors, if that was the goal. I don't see the actual, observed multiples valuation gap (before adjustments or attribution to known factors) listed.
I also gather that with U.S. listed international companies (e.g. ADRs) the full diversification benefit cannot be obtained.
Here https://verdadcap.com/archive/us-except ... ges-abroad is another analysis.
Statistics: Posted by comeinvest — Thu Mar 06, 2025 1:53 am