Financial Services: Banks Can't Rest Easy
The macro economy remains generally benign, but banks continue to strive for increased operational and capital efficiency.
The global financial services sector appears to be fairly valued. The overall sector trades at a price/fair value ratio of 1.03, which suggests bargains are limited. The cheapest subsectors are Global Banks, Regional European Banks, and Diversified Insurance firms with an equal-weighted by company average, price/fair value ratio of approximately 0.97.
Michael Wong does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.