Odyssean Investment Trust PLC

UK Equity market valuations compared with Default Quest® Valuation

As at 8th February 2022

Important Information

  • Past performance is not a reliable indicator of future performance
  • Investors may not get back the value of their original investment
  • The value of the Investment Company and the income derived from it may go down as well as up and is not guaranteed
  • Investing in small and mid-sized companies may involve a higher degree of risk than investing in larger sized companies
  • The Prospectus and the Key Information Document, available at www.oitplc.com, provide more information about the risk profile of the Investment Company
  • We draw Readers' attention to the Disclaimers at the end of the presentation

What is Quest®?

Highly revered cashflow-based valuation tool, used as part of our process

  • Equities Cash Flow Specialists
  • 26 year history (Quest® launched in 1996 by Terry Smith at Collins Stewart)
  • 15 person Fintech business acquired by Canaccord Genuity in 2011
  • Combines conventional and proprietary Quest® metrics
  • Analysis on 17,500+ global stocks in 47 countries
  • Research support tool for over global 150+ Investment Institutions
  • Idea Generation and Idea Validation
  • Web-basedresearch - www.canaccordquest.com
  • Strong track record of helping investors enhance Alpha Generation and Capital Preservation

Source: Canaccord Quest®

3

UK Equities appear attractive globally

US Equities' premium to Quest® default value has increased progressive since 2012

80%

60%

40%

20%

0%

-20%

Number of companies1

Aggregate Market Value (Discount)/Premium to Default Quest® fair value

70%

41%

29%

27%

26%

13%

17%

8%

5%

-8%

World

USA

Europe ex UK

AsiaPac inc Jap

UK

Today

Average 2002-21

17,021

3,416

2,446

8,393

1,126

Market cap total

$101trn

$48trn

$12trn

$30trn

$4trn

  • World equities are trading at a material premium to Quest® default value, largely driven by the USA
  • USA equities premium to Default Quest® fair value peaked at >100% during 2020/21
  • UK equities trade at a absolute discount to fair value and with a wide spread long term average valuations

Source: Canaccord Quest® as at 8th February 2022. Odyssean Capital. 1 Only includes UK quoted companies where there is at least one broker forecast. Mid values are implied. Past performance is no guarantee of future performance

and the value of investments can go up and down.

4

Within UK Equities, UK Small Companies appear most mispriced

Data implies only Mid cap equities are trading at a premium to Quest® fair value

Aggregate Market Value (Discount)/Premium to Default Quest® fair value

40%

37%

30%

21%

25%

20%

10%

5%

5%

1%

0%

-10%

-8%

-13%

-20%

UK Large

UK Mid 1

UK Small and Mid

UK Small

Today

Average 2002-2021

Market cap range

>£3.6bn

£750m - £3.6bn

Up to £3.6bn

Up to £750m

Number of

357

171

668

497

companies1

Market cap total

£2,520bn

£321bn

£390bn

£69bn

OIT Focus

  • OIT's investment focus appears to be on the most undervalued section of UK equities

Source: Canaccord Quest® as at 7th February 2022. Odyssean Capital. 1 Only includes UK quoted companies where there is at least one broker forecast. Mid values are implied. Past performance is no guarantee of future performance

and the value of investments can go up and down.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Odyssean Investment Trust plc published this content on 09 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 February 2022 09:28:00 UTC.