The Ultimate Global Equity Valuation Matrix

Tyler Durden's picture

Tired of getting caught tongue-tied at the polo field bar when someone asks whether Russian Utilities are cheap? Annoyed at the lack of your ability to instantly respond on the richness of British Beverage companies when racing Veyrons in Dubai? Have no fear. UBS, Global Valuation Heat Map provides an at a glance table of the best (and worst) global sectors for your hard-earned local currency to be devalued in.

Global Valuation - Price-to-Book (the number in the cell is P/B, the color is relative rich/cheap based on key below)


Global Valuation - Price-to-Earnings (the number in the cell is P/E, the color is relative rich/cheap based on key below)

Dark blue (very cheap) = current relative valuation < -1.5 standard deviations from historical average
Light blue (cheap) = current relative valuation between < -1.5 and <-0.75 standard deviations from historical average
No colour (neutral or N/A) = current relative valuation between > -0.75 and <+0.75 standard deviations from historical average
Peach (expensive) = current relative valuation between > +0.75 and <+1.5 standard deviations from historical average
Red (very expensive) = current relative valuation between > +1.5 standard deviations from historical average


It seems Short US Retail and Long Aussie Oil & Gas is the optimal trade for now?

Source: UBS

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Joe moneybags's picture

I'm going the other way.  Buy the red, for that's where the momentum is.

EnslavethechildrenforBen's picture

I printed it out, tacked it to the wall and I'm throwing darts at it.

knukles's picture

I shall sleep better tonight having downloaded it into my new Googlasses for my next cocktail party.

nobody but the brokers care anymore

Say What Again's picture

I noticed that the "beverages" category for the US is light-blue, indicating relatively low cost.  Is that because Maker's Mark has watered down their product?

CunnyFunt's picture

Ask Mickey "The Douche" Bloomberg.

willwork4food's picture

Bloomberg doesn't drink horse piss from mega American breweries. Ergo, the cheap price.

Goldilocks's picture

whipping post - the allman brothers band (5:21)

babylon15's picture

I'll take Brazilian beverages for 400 Alex.

bad craziness's picture

So thats long Woodside Petroleum (WPL) in Aussie and short which US retailer??

Cardinal Fang's picture

Hmmm. Indian Chemicals. What's up with that? I guess it would be bad to have a chemical spill in a densely populated country. I wonder why China seems unaffected?

willwork4food's picture

Oil & Gas Valuations: Canada 17.1 (in neutral), Italy 9.2 in red. And others suggesting higher numbers are more expensive. This chart makes no sense.

Freddie's picture

Just realize the different colors are like that on a roulette wheel or a craps table.  Bet red, blue, green - whatever.  Just bet bullish POMO.

Mister Ponzi's picture

Interesting "emerging markets" like Indonesia, Mexico, Turkey, Thailand and Poland are not covered - same is true for New Zealand.

Iam Yue2's picture

This is one time zerohedge posterboy and permabear David Rosenberg;
(We live in dangerous times.).

"Yesterday, I mentioned several parts of Latin America as being hidden investment gems for our international strategy. Another sleeper out there is segments of Africa where private equity is finding a home and even more liquid capital inflows into equities are rising to levels not seen in two years - to little fanfare, the frontier markets are up 8% so far this year, outpacing both the developed world and the traditional emerging market universe. See Investors Scramble for Africa on page 19 of the FT.

Is it well known that the Nigerian stock market is up 63% over the past year or that Kenya is up 46% (in USD terms)? Does anyone even know where these countries are on a map? Ghana has been a real hotspot for money inflows and its market has rallied 18%. Of course, liquidity is low in these markets and volatility high, but by all accounts, forward and trailing P/E ratios are among the lowest in the world and the FT article cites a nice 6% dividend yield to boost."

icanhasbailout's picture

It would be an interesting exercise to make a portfolio of the red and a separate portfolio of the blue and track performance over time.

new game's picture

source ubs

money washers...


AldoHux_IV's picture

Funny how the article about that new find of oil in aus hit a few weeks ago... who needs financing when you can corrale speculators or is this the tail wagging the dog, hard to tell these days.