Equities: Where Do European Sectors Stand (Valuation/Fundamentals)?

Source: Pixabay
Source: Bank of America Merrill Lynch

Recent market sell-off has given a bit more breathing room to European equity markets. On average, the 12 month forward P/E for the Stoxx Europe 600 index currently stands at 14.4x, which looks reasonable when you consider that the market expects 10.1% EPS growth this year + 3.6% Dividend Yield.

But but but…

It’s difficult to find many sectors that offer value/big opportunity right now. The most obvious one is Insurance, which trades on 2018 P/E of 11.2x for EPS growth of 19% and DY of 4.9%.

Oil & Gas also looks like a bargain.

Next you can consider Auto, with P/E of 8.4x and EPS growth of 6.1% + DY of 3.3%.

Finally, Technology might look interesting as well: P/E is expensive compared to market at 20.7x, but EPS are expected to grow 16.7% with DY of 1.7%.


This article is shared for information purpose only. This is by no means a investment recommendation to buy or sell securities. Buying or selling equities entails the risk to lose your capital, so you FIRST have to make sure this is suitable to your risk profile. Please if you consider investing in ANY stock market, request the assistance of a qualified and competent professional.