Little hope for a quick V-shaped recovery

Within the next five years, the vast majority of Europe’s largest companies may not be able to achieve results projected before the current crisis. Their implied equity risk premium has stabilised recently, however, it is still about 200 bps above the pre-crisis level.

Selected findings

• Net Income estimates of Automobile manufactures for 2020 declined by 29% on average. Forecasts for 2024 are down 7% compared to the pre-crisis level.
• For Media and Beverages, the current situation might mean bad times not only in upcoming months, but also in the long-term.
• Retailing is estimated to be impacted considerably this year, but with rather limited effects in the long run.
• Pharmaceuticals or Utilities are expected to weather the storm well, both in the short and long run.