Subject: Re: Foreign exposure
A 19 page article from Goldman Sachs about the UK market vs the US market


https://www.gspublishing.com/c...

From the article.

More UK companies are talking about moving their listing to
the US (Ashtead is the latest to propose a move). The
valuation gap to the US has become larger (Exhibit 1). And
only a small proportion of this is due to sector distribution;
every sector in the UK is on a double-digit P/E discount to its
US counterpart sector (Exhibit 2). This discount is of course
a Europe-wide phenomenon, but the gap between the UK
and US is especially large.


US companies are far more profitable, but even relative to
ROE, the UK market trades at a low multiple vis-a-vis other
markets; the UK has roughly twice the ROE of Japan but a
similar Price-to-Book (Exhibit 3).

Aussi