Gavekal Capital: Valuations Slow to Correct in MSCI Europe

Friday, October 17, 2014

Valuations Slow to Correct in MSCI Europe

A review of the percent of European companies in each sector that are trading above 7-year valuation averages reveals (with the possible exception of companies from the Energy group) a dearth of bargains throughout the region:

With the exceptions of Austria and Portugal, the results are similar on a country basis-- valuations for companies in MSCI Europe generally remain at elevated levels relative to 7-year averages:

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