Key Factors Changing Valuation Practice
Interest Rate Environment
Higher rates have fundamentally shifted discount rate
assumptions and made growth stocks more sensitive to multiple
compression. We're seeing renewed focus on near-term cash
generation capabilities.
ESG Integration
Environmental and governance factors increasingly impact
valuations beyond simple multiple adjustments. Understanding
these risks requires new analytical frameworks and data
sources.
Technology Disruption
AI and automation are changing competitive moats and cash flow
predictability across industries. Traditional sector comparisons
need careful reconsideration when technological adoption
varies.