US listings often fail to boost European companies’ valuations

European companies, which have increased the United States, often do not see their assessments, and financial times have been found for some executives, claiming that the presence of a New York market is higher.

Analysis of 12 European companies that have been added to US lists from 2016, including Ferguson, CRH and Flutter Entertainment: – It turned out that the assessments are evaluated in half of the cases, and in some cases there was no increase in the number of next shares analysts. However, after moving, two-thirds of companies have had a larger liquid right in their shares.

“The main thesis you are moving to the United States and your share improvement is not right,” said Richard Werner, BCLP Law Firm. “It’s definitely not so clear.”

European companies and their investors have been tempted The enormous increase in the US stock market In recent years, believing in it, despite the last market sales. They will enjoy a multiple earnings over there.

Last week the United Kingdom Broker TP ICAP says planning List his data business in New YorkIn February, Glassor said in London that he reviewed whether other places, including the United States, to the historical status of London as a mining center.

London-listed construction group Ashtead: plans to move The primary listing of New York and its chief executive has announced: “The advantages of the United States’s primary listing in other markets. A number of a number have become more obvious over the last few years. ” The British advertising group of WPP has “Looked” switch and French asset manager Chew also discusses such a step.

FT results come, as European policy urgently tries to restore domestic markets and encourage companies to stay at home. In the UK have regulators Renovated rules: For listed companies, trying to make London more competitive.

Companies analyzed by FT have increased new US prices, either primary or additional listing by keeping their European lists.

Suppliers Ferguson and Game Group Flutter Entertainment is among the groups to add US lists in recent years, as small companies such as dry mass operator Himalaya shipping and pharmaceutical company.

FT found a group of Irish building materials ClatterIndivient and Shipping Group Okeanis Eco Tankers were the only companies who enjoyed the rise, which would enjoy all three events, which would appreciate the volume of trade and analysts. Others were short-cut short.

The assessments of half of the companies analyzed in New York were lower than in local markets, the smaller shares were more difficult. On average, the next 12-month price / earnings for smaller companies, less than $ 10 billion, was about 7% in New York, while for larger companies it was about 1 percent.

“The secondary list of European countries for small or medium-sized European caps may be interested in US investors who look at larger companies where the brand recognition is more global.

However, CRH enjoyed a steady listing of its New York. The ratio of its average P / E increased 12 times in 18 months before it managed the average list 15 times in the past 18 months.

But Flutter, which has increased the US quote in 2024, can then have its primary listing of New York, no improvement.

Thus, the former FTSE 100 component Ferguson and Feror, whose average assessments were 9% and 11 percent, respectively after the US movements.

Adding the US listing can be an expensive step. BCLP Werner said that the value could range from about £ 1m to more than 1 million pounds, plus fees that are charged at the exchanges. Companies also have additional, continuous reporting costs to maintain the list, which can go to tens of thousands of dollars.

“There are very direct costs and indirect costs,” says the Chief Financial Officer of the Lord, which added the listing at Nasdaq Exchange in 2017.

FT analysis did not take into account factors such as the company’s earnings, regulatory changes or reinforcement, which everyone can affect the company’s P / E ratio.

Most companies gained greater liquidity, the easement that shares can be sold without the price of mandatory transportation. Major companies are growing about four times, when comparing their euro’s shares with their United States, while small companies have witnessed about 45 percent growth.

CRH liquidity is now about seven times higher in New York. But Ferrovial liquidity has given it there. About 37,000 of its shares in the United States are sold in the United States, compared to more than 1MN in Europe, as in the 10 months of the United States.

This “as expected by NASDAQ listing”, Ferrovial said to FT, adding to the group “Intention to the Building Extra Liquidity over time”.

FT also found that on average, the coverage of analysts was more or less a few analyzed for a number of companies, although bosses often quote more visibility as the presence of New York.

Oliver Lazenby, the partner Oliver Lazen, said to “Farmild” law firm. “All these things are finite, the analysts of banks and institutional investors do not have to have resources [to cover every single company]”

The net amount of US markets means that investors and analysts tend to have more notifications greater companies such as flattery or CRH.

“In a larger sea, attention is tended to go to bigger fish,” says Paul’s Month, Winton and grass. “If you are the tenth of that size, clearly, you need to work harder more channels.”