Converging Paths or Persistent Gaps? Understanding Valuations Across Public and Private Equity

May 29, 2025

Valuations play a critical role in shaping long-term investment outcomes and are often considered to be an important determinant of future performance. An area that has drawn attention in recent years is the comparison of valuations for the stock market and private equity, as both public and private equity valuations are near all-time highs. In this research note, we aim to evaluate where private equity valuations are relative to public markets, with a focus on North American buyout strategies and US equities, and what implications this may have.