In August 2002, the European food sector hit a 30% P/E premium to the European market, the biggest f...
In August 2002, the European food sector hit a 30% P/E premium to the European market, the biggest for a decade, but has since come crashing back to earth. It seems the high beta rally in the fourth quarter of 2002 has continued into the first quarter of 2003, strange given that the sector is underperforming a falling market. This has resulted in the 30% premium being eroded to less than 5%. We think this is unjustified given that the sector fundamentals have arguably improved in the intervening period. While external factors like foreign exchange, higher commodity pricing and a tou...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes