XAR - XAR: Aerospace And Defense Companies Are Probably Overvalued

Summary

• XAR invests in aerospace and defense companies.
• I think unless the ever-present risk of war was to materialize (resulting in a strong boost to aerospace and defense earnings), XAR seems overvalued.
• The trailing dividend yield has never really been tighter, while even adjusted earnings figures would suggest a fairly moderate/average return on equity.
• XAR's valuation does not make much sense to me; at least, while it might trade within the bounds of expectation, it is on the pricey side and would lend to little chance of relative outperformance.

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