Capital Markets: Observations & Insights

What Is In and Out of Favor? ​ Valuation

• Sector valuation varies with the more bond-like equity sectors trading at premiums to the market

P/E Relative to 20-Year Median

28%

27%

17%

16%

16%

11%

8%

4%

-1%

-2%

-4%

-9%

Energy

Utilities

S&P 500

Materials

Financials

Industrials

Health Care

Real Estate

Consumer Staples

Information Technology

Consumer Discretionary

Communication Services

Source: FactSet and UBS, based on S&P 500 Index as of 3/31/19. The Communication Services, Consumer Discretionary, and Technology sectors’ historical data have been restated to reflect September 2018 changes to the GICS sector classifications. Note that Consumer Discretionary ex-Internet Retail is a 1% premium to its 20-year median.

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