Is the UK Market Undervalued?

New research from Morningstar indicates where the country opportunities lie across European markets

Holly Cook 23 October, 2013 | 11:53AM

The UK stock market is a shade undervalued at present, while Ireland, the Netherlands, Belgium and Switzerland are overvalued. But there remain more obvious pockets of opportunity elsewhere in Europe, with Norway standing out as an investment opportunity and Russia the most undervalued market for investors willing to take on risk. These are the findings of a recent study using Morningstar's new Equity Quantitative Research data. 

The colour-coded map below shows over-valued markets in red and under-valued markets in green. Just shy of the mid-point is the UK, signalling that LSE-listed UK shares are a shade undervalued at present.

Morningstar Equity Quantitative Research uses a statistical algorithm in combination with a hypothesis based on Morningstar's economic moat rating for stocks to formulate fair value estimates and uncertainty ratings for 32,000 companies worldwide. Collating the results by country allows us to take a view on the valuation of global markets and sectors.

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About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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