Capital Markets: Winter 2019

Bargains Abound ​ Valuation

• Sector valuation varies with most trading at discounts to their historical median

P/E Relative to 20-Year Median

12%

6%

0%

0%

-1%

-3%

-5%

-9%

-10% -11%

-15% -16%

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 12/31/18. 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 an 11% discount to its 20-year median.

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