XLRE - Financials And Real Estate Valuation - Update
This article series provides a monthly dashboard of industries in each sector of the GICS classification. It compares valuation and quality factors relative to their historical averages.
Executive summary
Combining 3 valuation ratios, mortgage REITs and consumer finance are underpriced regarding their historical averages. The capital markets industry is fairly priced. Mortgage REITs and capital markets are also above their historical baseline in profitability. Real estate management shows mixed ratios: price/earnings and return on equity are excellent, price/free cash flow is fair, but price/sales ratio is very bad. Combining valuation metrics, equity REITs are moderately