“There has been another narrative that valuations are higher in the US,” she said. “On an absolute multiple based on the composition of indices that may be the case, but it’s also a meaningless number for any individual company.”
There is a prevailing narrative that London is systematically undervalued as a market. Is that the case? Charlie Conchie takes a closer look
Julia Hoggett was in a jovial mood as she addressed a room of capital markets bigwigs at the Guildhall on Monday morning.
“Thanks to the City of London for providing an inclusive podium. My biggest fear of public speaking is not being able to see over the top,” Hoggett quipped to the City Week Forum.
The London Stock Exchange chief’s diminutive frame has always belied her readiness for a scrap with gloomsters trying to do down her market. Hoggett is everywhere in the City. Any capital markets event and the bourse chief will be on stage taking her naysayers to task and trying to combat what she sees as the unreasonably negative narrative plaguing London.
Those views are not new from Paternoster Square. Hoggett’s boss David Schwimmer has been firm in dismissing the valuation gap as a “myth” and in a recent podcast described the narrative of an exodus from London as “silly” and “ridiculous”.
But the perception of London as a bargain bucket has dogged the market for more than a year and the huge premia being paid by bidders has fuelled a feeling that London-listed firms are ripe for picking...
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