Report Shows Impact of Investor Relations on Company Valuation

An effective IR program supports a premium of 15% and a decline in volatility of 5%

Investor Relations can be a competitive advantage for a public company similar to great products, talent, science, assets or operations. This S&P Global analysis focuses on best-in-class IR programs, identifying what makes these teams stand above the rest and quantifying their success. By creating a lower cost of capital and a competitive business advantage, companies are better positioned to maximize valuation.

The S&P Global report shows that best-in-class IR measurably enhances valuation for companies demonstrated by a premium of 15% and a decline in volatility of 5%, as measured by beta. Ineffective IR may lead to a discounted valuation of 10% or more.

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A higher valuation has a direct impact onaccess to capital

A higher valuation has a direct impact on the company's access to (and cost of) capital, which contributes significantly to sustainable business growth -- particularly versus competitors -- creating a competitive advantage. These 2 factors taken together provide companies with a significant competitive advantage over time, enabling the firms to invest in business growth for the future. Companies with highly ranked investor relations programs benefit from an optimal valuation and reduced cost of capital.

Expert opinions from IROs from all regions around the world

This eBook is for any management team wishing to build or enhance its IR function and benefit from these competitive advantages. Along with the analysis, we have successful IROs from all regions around the world share their insights on what makes a successful program. Dowload the full report for the analysis and expert insights.

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