European Capital Partners - Below the surface Discover this fund | European Capital Partners
Asset management and fund structuring boutique

Below the surface

Aug 17, 2023

Below the surface, there is still value in the US stock market as a good part of the high multiples are explained by technology and particularly AI-related stocks. Nasdaq currently trades at 31.1 times forward earnings, which is close to the highs of the peak of the Internet bubble. The top 12 AI-related stocks currently trade at 27.7 times forward earnings. Excluding these, the multiple of the S&P 500 falls from 19.4 to 17 times earnings, a more reasonable level both in absolute terms and compared to the long term average.

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