The American Dream, or the American Premium? Valuation Differences Between US- and Swedish-Listed Firms

Abstract

We find that US-listed firms are associated with higher valuations than comparable Swedish- listed firms. Using Capital IQ data on IPOs between 2010 and 2026, we estimate OLS regressions for IPO valuation, current market valuation, and alternative valuation measures. The results show a consistent valuation discount for Swedish-listed firms, even after controlling for sponsor backing, firm characteristics, and industry composition. Sponsor-backed firms are generally associated with higher valuations, although this effect is less robust across alternative specifications. Overall, the findings suggest a persistent US valuation premium relative to Sweden, although the results should be interpreted as conditional associations rather than causal effects.