Thursday, January 25, 2018

Domestic vs. International Valuation and Performance

Although value hasn't been so predictive since the worlds Central Banks have been pumping liquidity into the system and distorting historical truisms, there is still something to gain from valuation multiples.

Below I have subtracted the US Enterprise Value / Earnings before Interest, Taxes, Depreciation, and Amortization from International to create a relative valuation.

Next I ran a regression against the spread and total return. It is not perfectly predictive but, I think, it still makes a case for valuation multiples being useful measures of future returns.

Domestic vs. International Valuation and Returns



Submitted January 25, 2018 at 11:19AM by StateofCaptial http://ift.tt/2BseQGn

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