Is the Market Blind to Data? An Empirical Study of Valuation Multiples in Latvia
Ritvars MĒTRA
https://doi.org/10.18267/pr.2026.vol.2587.23
Abstract: This paper examines whether capital markets reward firms that treat data as a central economic asset. Drawing on the concept of Data Capitalism, it tests the existence of a “data premium” in firm valuation using a novel Data Capitalism Maturity Framework applied to Latvia’s 101 most valuable firms. Combining a 2024 cross-sectional analysis with panel data covering 2022–2024, the study evaluates whether higher data maturity is associated with higher valuation multiples once firm size and industry are controlled for. Descriptive patterns, non-parametric correlation tests, and multivariate regressions consistently fail to identify a positive relationship between data maturity and market valuation. Instead, firm size and sectoral affiliation dominate valuation outcomes. A robust and persistent negative relationship between turnover and valuation multiples reveals a “revenue penalty,” suggesting that scale is discounted rather than rewarded in this market. Industries anchored in tangible assets, such as natural resources and real estate, command higher baseline valuations, while data-intensive business models receive no systematic premium. The findings suggest that, in small and shallow capital markets, the financial logic of Data Capitalism does not translate automatically into valuation signals. Data may shape internal performance, but it remains largely invisible in market pricing.
Keywords: Data Capitalism, Firm Valuation, Valuation Multiples
JEL Classification codes: G32, L25, O33
Fulltext: PDF
Published by: Prague University of Economics and Business, Oeconomica Publishing House
Year of publication: 2026
Online publication date: 20 May 2026
Copyright: Authors of the papers
ISBN 978-80-245-2587-7
ISSN 2453-6113
Pages