Europe ex Granola’s is Bang in Line

Here is an update on valuations before the weekend after the good performance y-t-d of the main global stock markets. In terms of 12 months forward PER ratio, the US is overvalued even when excluding Big Tech. The main other developed markets are now slightly above their median 20 years valuation but still within the interquartile range. Outside the biggest market caps in Europe, the so-called Granolas (Glaxo, Roche, Asml, Nestlé, Novartis, Novo Nordisk, L’Oréal, LVMH,  Astrazena, SAP and Sanofi ), European stocks are Bang in line with their 20 years average valuation. We believe that this is exactly where the main undervalued investment opportunities are to be found.