- 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.
- Currently, among European equity sectors, financials, industrials, energy, staples and automobiles look undervalued while health care, utilities, materials and software appear overvalued.
- Among European equity styles, undervaluation is indicated for large cap value and small cap while growth, value, quality, momentum, large cap and small cap growth look expensive.
- That said, incorporating non-quant signals from our analyses, we recommend to overweight insurance, div. financials, media, telecoms and capital goods. Underweight durables, transportation, real estate, commercial & professional services and momentum.