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.
For further details see:
XAR: Aerospace And Defense Companies Are Probably Overvalued