Chart of the Week

International value stocks tended to outperform growth stocks when they traded at larger valuation discounts

May 17, 2024

We ranked the price/book of international growth and value stocks for each quarter going back to 1974 and divided the results into quintiles. During quarters when the P/B of value stocks was less expensive (i.e., discounted) relative to the P/B of growth stocks, value stocks tended to outperform over the subsequent 5-year period. The greater the discount, the greater the outperformance.