Our Market Optics chartbook contains data-driven insights that power our portfolio management teams’ views, ideas, and decisions. Each week, we’ll take a look a closer look at one of the charts.

This week’s topic: Equities: Multiple multiples.


  • After tech stocks took a slide, valuations are on the minds of many investors. From a very high level, and using multiples as imperfect indicators of valuations and opportunities, smaller-cap and more value-oriented names look relatively more attractive.
  • Multiples like price/earnings and price/book aren’t valuations. They are multiples. Valuations come from figuring out the intrinsic value of investments and multiples don’t always—if ever—help with identifying value and indicating the timing of when to shift into different parts of the market.
  • This warning against conflating multiples with valuations is especially true when there seem to be fundamental shifts in the outlook for the economy and the earnings power of businesses.

Get more charts and insights like this by downloading our Q2 Market Optics chartbook today.


Index definitions

All investing involves risks, including the possible loss of principal. There can be no assurance that any investment strategy will be successful. Investments fluctuate with changes in market and economic conditions and in different environments due to numerous factors, some of which may be unpredictable. Each asset class has its own risk and return characteristics.



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