IR Competitive Advantage | S&P Global (2024)

Investor Relations is aCompetitive Advantage@weight>

Report Shows Impact of Investor Relations on CompanyValuation

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

Investor Relations can be a competitive advantage for a publiccompany similar to great products, talent, science, assets oroperations. This S&P Global analysis focuses on best-in-class IRprograms, identifying what makes these teams stand above the restand quantifying their success. By creating a lower cost of capitaland a competitive business advantage, companies are betterpositioned to maximize valuation.

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

A higher valuation has a direct impact onaccess to capital

A higher valuation has a direct impact on the company's accessto (and cost of) capital, which contributes significantly tosustainable business growth -- particularly versus competitors --creating a competitive advantage. These 2 factors taken togetherprovide companies with a significant competitive advantage overtime, enabling the firms to invest in business growth for thefuture. Companies with highly ranked investor relations programsbenefit from an optimal valuation and reduced cost of capital.

Expert opinions from IROs from all regions around theworld

This eBook is for any management team wishing to build orenhance its IR function and benefit from these competitiveadvantages. Along with the analysis, we have successful IROs fromall regions around the world share their insights on what makes asuccessful program. Dowload the full report for the analysis andexpert insights.

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