Link: https://www.cutter.com/article/snapshot-quantifying-impact-geopolitical-risk-share-price
From Leadership
Jin Yoon provides an examination of financial data from a group of US and Chinese technology companies. Analysis spanning several years on price to earnings (P/E) and enterprise value to revenue (EV/Rev) clearly shows a negative effect on share prices from geopolitical risk: a 24% discount on a forward P/E basis and a 42% discount on forward EV/Rev. Yoon says the analysis demonstrates the profound impact that geopolitical turmoil can have on a company or industry’s market value and that this finding can guide investors and operators as they try to mitigate geopolitical risks.
Leadership
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