Cheap Cheap? Pinpointing Value Among MSCI World Regions

In our fundamental analysis, we have developed a system by which companies receive both a quality and a valuation score.  The valuation component is comprised of various different metrics that compare the company's valuation to items that include, but are not limited to, the benchmark's valuation and earnings growth.  Using this tool, we can quickly pinpoint areas in which we might find the most undervalued companies-- a task that is not so easy these days (see here).

MSCI World Index


MSCI Asia-Pacific


MSCI Europe


MSCI North America


By this methodology, we see that the constituents of the Telecom and Utilities sectors have an overall valuation advantage.  That is not true, however, in the Asia-Pacific region, where Energy tops the list of sectors where more attractively valued companies may be found.  MSCI Europe stands out with the largest dispersion of scores; it is home to both the most undervalued (Energy) and overvalued (Information Technology, see here) sectors among the different regions.  This is in contrast to the North America region, where valuation scores are in a tighter range.