Ranking of World Sectors Using the Residual Income Model, based on Lumen’s calculated Cost of Equity – June 2022
Global Sectors Outlook as of June 2022 using the Residual Income Model and Lumen calculated Cost of Equity
Category: Valuation
Ranking of Regional Markets Applying the Residual Income Model and the Lumen-calculated Market Implied Expected Returns/Cost of Equity (June 2022)
Selected Regional Markets Outlook as of June 2022 – Value vs. Risk
Regional Markets and US Sectors Outlook Q1 2022 – Value vs. Risk
Please check out the Intrinsic Value column for the ranking of value and the Intrinsic Risk column for the ranking of risk – based on the Residual Income Model.
Regional, Emerging, and Major Markets Investment Outlook – Value vs. Risk
Using the Lumen Global Value Compass calculated market-implied expected returns and stress-testing with the Residual Income Model, we discovered lots of value dispersion regionally and within the emerging world. Intrinsic risk is more skewed towards EM than DM.
China (A) Market and Sector Outlook in a Few Charts
Based on our intrinsic value vs. intrinsic risk calculation using the Lumen market-implied expected returns, we highlight a few sectors – healthcare, financials, and consumer staples for the China A-share market.
Rallies, Bubbles, and Value
Despite a pandemic, economic misery, and a dangerously contested election the likes of which the United States has never experienced, the equity market continues its upward march and breaking new records in the process. Indeed, many pundits point out to the enormous rally of the mega caps as evidence of a bubble. We disagree, and if anything, we believe the market has behaved very rationally.