M&A Risk July 20, 2021Our new analysis suggests that country risk premiums are often set too high by industry analysts, leading to overvaluation—and missed investment opportunities. In this Brazilian example, the difference between S&P 500 and Bovespa price/earnings ratios can be explained entirely by performance. Investors take heed: a risk premium for an emerging-market company may not always be necessary. We strive to provide individuals with disabilities equal access to our website. If you would like information about this content we will be happy to work with you. Please email us at: McKinsey_Website_Accessibility@mckinsey.com To read the article, see “Don’t overthink your approach to valuation in emerging markets,” July 15, 2021.