Sector Valuations: Europe vs. U.S. |

Sector Valuations: Europe vs. U.S.

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Europe stocks have outperformed U.S. stocks month-to-date, having returned 4.07% vs. 1.99% for U.S. stocks. Euro and Pound are still cheap relative to their 10-year average.

Valuations vs. U.S. stocks are slightly cheap vs. the 5-year average. Top 3 most expensive sectors based on forward price to earnings ratio in Europe are Information Technology, Consumer Discretionary and Industrials while the 3 cheapest are Real Estate, Communication Services and Financials. Top 3 most expensive sectors based on forward price to earnings ratio in the U.S. are Energy, Real Estate and Consumer Discretionary while the 3 cheapest are Utilities, Health Care and Financials.

Source: Bloomberg Finance L.P. Data as of 06/30/2020

Definitions:

Europe: MSCI Europe Net Total Return USD Index is a free-float weighted equity index designed to measure the equity market performance of the developed markets in Europe.

U.S: S&P 500 Index: The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization

Forward price to earnings (P/E) ratio: Ratio calculated by dividing the price of the security by the forward 12-month earnings per share estimate.

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Sector Valuations: Europe vs. U.S.

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