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 |
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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.