Deloitte Belgian CFO Survey - Q3 2009
Each quarter we ask CFOs for their views on the valuation of three major asset classes – equities, commercial real estate and government bonds. Views on under of overvaluation have not considerably changed over the time for commercial real estate and government bonds, but the undervaluation compared with the first quarter halved for equity.
Not withstanding the important rally of the Bel 20 in the third quarter - lifting it up 20% - a majority of the Belgian CFOs believe that equity in the Belgian market is still undervalued. This is in contrast with the UK CFOs who after a similar rally of the FTSE 100, know think the FTSE is overvalued. 80% of Belgian CFOs count on the Bel 20 Index to be higher in a year’s time.
CFOs believe that equity in the Belgian market is still undervalued, though the perception of undervaluation has significantly decreased as compared to the first quarter.
40% of the CFOs believe that the equities are currently at their fair value. Equity has gone from being seen as a very undervalued asset to a more reasonably priced asset. While commercial real estate and government bonds are slowly evolving towards fair pricing.
Although the rally of the Bel 20 pushed the share index 20% higher in the third quarter, 80% of CFOs count on the Bel 20 Index to be higher than today in a year’s time.