In our July Monthly Market Review we released a series of graphs representing the valuation attractiveness of each sector relative to its historical norms and to the entire AFG universe. Below is a graph representing the AFG Technology sector which is attractively priced when you compare against its historical trading ranges (red line) and when comparing against the overall AFG Universe (represented by the value of 1). Listed are 5 attractive and 5 unattractive companies in the AFG Technology sector that are within the S&P 500. Also listed below the graph is an explanation of AFG’s Relative Valuation Chart.
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Technology Sector Relative Valuation Chart
Relative Valuation Chart -This graph shows the Valuation Attractiveness for a universe relative to the overall market. Values greater than 1 indicate the universe is more undervalued than the market, while values less than 1 indicate the opposite. The red line identifies the historical median value to provide a basis to understand valuation levels relative to historic norms. This example illustrates that the median technology company is undervalued relative to the market currently and has been trading at a discount to its historic relative valuation, indicating a potentially attractive opportunity.
Attractive and Unattractive Companies In AFG Tech Sector based on Valuation Attractiveness (within S&P 500)
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If you are a professional investor and would like a free trial of AFG’s research and suite of investment tools Click Here to have an AFG representative contact you.
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