Growth is undervalued by the market today. The lowest quartile in Reinvestment Return (RR) has a median VR of - 9% while the top quartile median is +11%. There is little difference across the Yield quartiles but when added to RR, we get an even higher discrimination over the combined IR (Inherent Return) which is RR + YLD
Low Payback shows the best disparity in value of +54% vs +31% for IR
The ratio of Estimate/Normalized earnings (EM or E/M) shows the best values at the least attractive end of the range while the small Market Caps are more undervalued that Large Caps by 7%.
NB Quartile ranks go from low to high.
Value by Sector is summarized in this table -
The best values are in Basic Materials, Financial and Industrial Sectors while the worst is the Utilities.
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