March 27, 2020

Update on quant signals for EU equity sectors and styles

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In Short

We present an update of our proprietary equity valuation tool, based on quant models, which provides indications of over- or undervaluation for different sectors and styles of European equities.
Update on quant signals for EU equity sectors and styles
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Highlights:

  • We present an update of our proprietary equity valuation tool, based on quant models, which provides indications of over- or undervaluation for different sectors and styles of European equities. We add tables showing the past recovery after the huge drawdown caused by the Lehman crisis, for sectors and styles.
  • Currently, among the European equity sectors, financials, telecommunications, energy, staples and automotive look undervalued while materials and IT appear overvalued.
  • Healthcare and utilities (a “buy” in our late October release) outperformed and are currently fairly valued (not expensive yet).
  • Among the European equity styles, undervaluation is indicated for value, small cap, large cap value and minimum volatility while cyclical, growth and large cap look expensive.

Download the full publication below

UPDATE ON QUANT SIGNALS FOR EU EQUITY SECTORS AND STYLES

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