US listings don't guarantee higher valuations for European firms

A Financial Times analysis reveals that European companies adding US listings often do not see increased valuations. In half of the cases studied, valuations fell, and many companies experienced no increase in analyst coverage, despite improved liquidity. The analysis included 12 companies, such as Ferguson and Flutter Entertainment, that maintained their European listings. While some firms, like CRH, benefited from higher valuations, others, including Ferguson and Ferrovial, saw declines after their US listings. The findings challenge the belief that a US presence guarantees higher share prices. European policymakers are working to enhance domestic markets as companies consider US listings, which can incur significant costs and may not always attract investor interest.