Tuesday, March 4, 2014

Slim Pickings for the Tech-Inclined Value Investor-- Especially in Europe

Across all three regions in the MSCI World developed index, Information Technology stands out as the sector with the largest proportion of stocks trading at greater than 25x P/E.

Asia-Pacific:
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Europe:
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North America:
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MSCI Europe, however, sets itself apart in that ALL of it's technology constituents currently trade at greater than 20x P/E.  And that seems almost tame when we consider that other metrics show even more extreme levels of overvaluation: nearly three-quarters of Information Technology stocks in Europe are approaching seven year highs in price to sales:

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