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A&M Germany Valuation Insights highlights notable shifts in pricing dynamics and their influence on asset valuations.
The price for taking on equity risk in Germany has fallen sharply over the past three quarters, driven primarily by three factors: a higher risk-free rate, rising market capitalization across CDAX constituents, and downward revisions to consensus earnings forecasts.
On a year-over-year basis, multiples diverge across the CDAX: Industrial heavyweights drive significant multiple expansion, while consumer goods companies remain under structural pressure.
In global comparison, US companies continue to trade at a premium to their European counterparts, supported by stronger profitability and more robust growth expectations. Looking at LTM trading multiples, S&P 500 firms consistently outpace those in the S&P Europe 350. However, this divergence does not uniformly extend to M&A transactions, where deal pricing varies considerably by industry across both regions.
Originally published 09 December 2025 .
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