It's all about the margins. Small Caps trading at 63%ile on EY (E/P), Large Caps 7%ile; but both reflected elevated profit margins and expectations. On sales basis, large caps at 0%ile and 9%ile for small
Jeff Weniger
Jeff Weniger22.7. klo 09.17
Small caps are 20.5% cheaper than large caps on price-earnings ratio. The years that witnessed this discount are 1973, 1976, 1998, 2001 and 2020. Even investors who were early in 1973 and 1998 would have then witnessed two legendary small cap cycles: 1974-1981 and 1999-2018.
20,59K