Global Sector Valuation Ratios
(deutsche Version)

StarCapital determines the relative attractiveness of 6,500 companies from 66 countries in 13 regions and 39 sectors on a monthly basis. Since long-term equity-return-expectations can be derived from fundamental valuation factors (refer to our research paper " Predicting Stock Market Returns Using the Shiller-CAPE: An Improvement Towards Traditional Value Indicators? [2016]", and since the timing of value-investments may be improved by utilizing momentum-indicators (refer to our research paper „Value meets Momentum“), we use fundamental and technical criteria in our asset allocation.

The following chart shows the corresponding weight distribution in our universe. Attractive investments in terms of our StarCapital Value-Score are shaded blue, less attractive investments are shaded red:

Global weight as

Attractiveness:       high       neutral       low

A selection of the ratios we consider are presented in the following table. The StarCapital Score determines the relative attractiveness of a sector, whereby the most attractive sectors are shaded blue (as in the chart above).

StarCapital AG

More detailled information is presented in our research paper "Predicting Stock Market Returns Using the Shiller-CAPE: An Improvement Towards Traditional Value Indicators?" [2016]

Additional Information “Valuation differences often primarily caused by different sector structures?: To determine to what extent valuation discounts and premiums of a country can be explained by its sector weights, we adjusted the world’s sector weights to match those of the country in this chart.

For queries or additional information please contact:

Norbert Keimling
Head of StarCapital Research

Control the sliders to filter the table according to your preferences:

Global Sector-Overview of Fundamental Valuation Ratios as of .

In the above table, empty cells represent negative or unavailable values. The sectors are based on the StarCapital equity universe. The presented valuation ratios are market-capitalization-weighted. "Weight" provides the actual country weight. PE (Price-Earnings-Ratio), PC (Price-Cashflow-Ratio), PS (Price-Sales-Ratio) and DY (Dividend-Yield) are based on trailing 12 month values. PB (Price-Book-Ratio) is based on the most recent company financal statements. RS(Relative-Strength)-Indicators (following Levy) divide the current market price by the average price of the previous 26/52 weeks and 3/5 years. To ensure comparability across countries, the RS-Indicators are calculated in EUR. The StarCapital-Score is derived from fundamental valuation and relative-strength indicators and measures the relative attractiveness of a country (blue=cheap/attractively valued, red=expensive/unattractively valued). We exclusively examine companies for which data is supplied by at least two independent providers. Outliers are assessed qualitatively and removed where necessary. The selection is based on the Datastream Global Equity Universe. The published information does not constitute investment advice or recommendations. No responsibility is taken for the correctness of this information. Source: StarCapital, Thomson Reuters Datastream, corporate information et al.

The presented information is proprietary to StarCapital, and may not be copied or distributed without our prior, written permission. We do not guarantee that the information is accurate, complete or timely.