Valuation of our equity funds

Within Insights we provide you with a deeper understanding of our investment philosophy and thinking.

Since the outbreak of the pandemic at the beginning of 2020, the valuation levels of equities in Europe and the USA have experienced high fluctuations. In this edition of our "Insights" series, we address the questions of what we look for when valuing companies, how the valuation levels of our funds and individual stocks have developed compared to history, and why we believe that it is not low P/E ratios but good quality and growth ratios that make the difference in the long term.

To summarise:

  • Valuations of high-quality growth stocks have reverted to historical average levels over the past few months.
  • For companies that are still trading above their historical valuation levels, we see valid reasons to justify a valuation premium.
  • Compared to the market as a whole and to value indices, our stocks are clearly ahead in terms of growth and quality indicators.
  • The selection of high-quality business models with a stable earnings trend is becoming even more relevant within the current economic situation.

We therefore continue to see many opportunities for our approach and believe that the normalised valuation levels, coupled with continued solid growth ratios, offer good entry opportunities over the coming months.

Read the full publication here


Matthias Born
Head of Investments and CIO Equities
Tim Gottschalk