Capital Markets: Observations & Insights

Varying Premiums ​ Valuation

• Sector valuation varies with no sector trading at a significant discount to its historical median

P/E Relative to 20-Year Median

30%

20%

13%

11%

10%

7%

6%

5%

4%

3%

2%

-1%

Energy

Utilities

S&P 500

Materials

Financials

Industrials

Information

Technology

Consumer

Health Care

Communication Services

Real Estate

Discretionary

Consumer Staples

Source: FactSet and UBS, based on S&P 500 Index as of 9/30/18. Note that the Communications Services, Consumer Discretionary, and Technology sectors’ historical data have been restated to reflect September 2018 changes to the GICS sector definitions.

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