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IHS Markit's Perception Analytics team engages in in-depth
discussions with investors and analysts daily. Given recent market
volatility and significant economic uncertainty, IHS Markit will be
speaking to investors and analysts on a regular basis to assess how
the current situation with COVID-19 is impacting their evaluations
of and engagement with corporate issuers. The eighth topic we
collected feedback on is how companies should frame discussions
around valuations given the extreme recent levels of market
turbulence.
Highlights include:
Many investors believe it is inappropriate in most situations
for companies to directly comment on their stock price as it is the
job of the market to determine valuations.
"I have always found it tricky when companies speak about
their valuations. I think a company's actions are enough to signal
its opinion on its share price"
However, many respondents wish to see firms provide
guidance and commentary on their operations so the market
can make the best assessment of valuation.
"It is the IR team's job to present the strategy and
direction of the company in a way that investors can digest and do
the work they need to in order to assess the valuation."
Some suggest that valuation volatility provides an
opportunity for IR and management to increase
engagement with new investors.
"As a company, I would look for investors who have a good
idea about my business and will be there to support the stock
during drawdowns. Companies are always looking for these types of
investors, and it actually becomes more important amidst this
volatility."
IHS Markit's Perception team will continue to gather real-time
market feedback as the situation unfolds, so please look out for
the next part of this series.
IHS Markit provides
industry-leading data,
software and technology platforms and
managed services to tackle some of the most difficult
challenges in financial markets. We help our customers better
understand complicated markets, reduce risk, operate more
efficiently and comply with financial regulation.
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.
