4 Expensive UK Stocks Trading at a Premium

A buoyant market can leave some stocks trading at significantly more than their fair value estimate. We reveal the 4 companies currently overvalued

Emma Wall 12 January, 2018 | 10:18AM
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Stock markets across the globe rose significantly last year – with emerging markets up 30% plus, the S&P 500 managing a return of 20% and even the FTSE 100 gaining 7.6%.

But a buoyant market can leave some stocks trading at significantly more than their fair value estimate. There are four UK stocks under Morningstar equity analysts’ coverage which are currently considered to be significantly overvalued. These stocks carry a one-star rating, meaning they are trading at a premium to their fair value.

Anglo American (AAL)

Global mining giant Anglo American's portfolio spans many commodities and continents. Like fellow large diversified miners, Anglo has significant exposure to copper, coal, and iron ore, but it is unique in its significant platinum output, which accounts for roughly 40% of the annual global supply. Anglo also owns 85% of De Beers, in most years the world's largest supplier and marketer of rough gem diamonds.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Anglo American PLC2,762.50 GBX-1.99Rating
Direct Line Insurance Group PLC282.00 GBX-1.40Rating
Intertek Group PLC4,860.00 GBX-1.28Rating
Rio Tinto PLC4,657.50 GBX-1.43Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar