Dispersion of European valuations at highest point since dotcom boom

EUROPE

The region's equity market have had more than their fair share of challenges already this year.

July showed promising signs of a return to some sense of stability as concerns eased but the see-saw effect of equity markets beforehand highlights just how unsettled the investment environment remains. Such volatile conditions call for a sound investment strategy – one which enables an investor to make this scenario work to his or her advantage. The value-to-cost ratio (adjusted price-to-book ratio) of a business is actually telling us a valuation-based strategy is suited to European equities in today’s volatile conditions. More specifically, the dispersion of valuations across secto...