ECP | Luxemburg, 21.08.2020
One of the attractions of European equity markets is their valuation gap compared to the US. According to Bloomberg, S&P 500 currently trades at a forward price earnings ratio of 23.2 times versus only 19.2 times for the Europe Stoxx 600. The valuation gap between the US and the old Continent has increased over the last years and is at a record high. However I believe it would be a little too simplistic to reduce the “Why Europe” argumentation to the sole valuation discount argument.
Mit freundlichen Grüssen aus Luxembourg
Léon Kirch, CIO & Partner
