Capital markets around the globe have been in a state of turbulence since the shock delivered by the COVID pandemic. Even as many countries exit this crisis, other issues, unfolding simultaneously and on multiple timescales, ensure that uncertainty remains high: the war in Ukraine, the ensuing inflation (and rising interest rates), instability in the banking sector, and the escalating threat of climate change. Given this persistent, multi-dimensional uncertainty, discount rates have risen, putting companies whose valuation rests on their long-term growth potential under particular threat.
