Swiss Economics supported a regulated airport in identifying and selecting an appropriate peer group to determine its regulatory beta. The selection was based on a thorough analysis of comparable companies, both domestic and international on the basis of their regulatory framework as well as their liquidity on the stock market.

Method

• Identification of potential peers
• Definition of appropriate selection criteria, including liquidity indicators and regulatory framework comparability
• Selection of peer groups based on defined criteria
• Sensitivity analyses regarding data frequency, data length and delevering formulas
• Synthesis of findings and recommendations