How much are chateaux really worth?

The Liv-ex methodology considered the current trading prices for each major estate’s five most recent vintages multiplied by the quantities produced, before dividing the result by 1.5 to allow for margins taken by negociants and merchants.

It then looked at recent transactions of major estates, and, to arrive at a final figure, multiplied the total income achievable by 15.

Liv-ex justified the seemingly high valuations on estimated gross margins of 70-99% for to cru classé estates and the rising prices for fine wine, and pointed out that the multiplier (15) used represents an estimated value of 16-20 times pre-tax earnings.

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