🫧 Where the market pays too much

What is P/E? The price of a share divided by the profit it generates in one year. A P/E of 20 means that we are paying 20 years of current profits. The higher it is, the more expensive the share is relative to what it earns.

Why 25? In the Investlytic model, a share whose P/E exceeds 25 is considered expensive: this is one of the 5 engine criteria. Here we apply the same rule to an entire sector.

A bubble? A sector paid very dearly compared to its earnings (group P/E of 40 or more). The price assumes very strong growth; if it disappoints, the drop can be brutal. The "inflates" marker signals a P/E increase of at least 30% in one year.

How to read the map:

• One row per sector (click to see its sub-sectors), one column per country, and World first as a benchmark.
• The figure in the box is the group's P/E: total capitalization divided by the profits of the beneficiary companies. The color gives the zone: green bargain (less than 12), neutral normal (12 to 25), orange expensive (25 to 40), red bubble (40 and over).
• Hatched box: fewer than 5 companies with a P/E, the figure would not be reliable.
• Click on a box to see its evolution since 2015, the share of companies in loss, and the most expensive in the group.

Cheap does not mean a good deal: a sector can be inexpensive because its profits are going to fall. The map shows expensive or cheap areas, never a buy or sell order.

📖 Glossaire : P/E (PER)

⚠️ This is not an investment advisory.