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