EV/EBITDA ratio for the MSCI AC universe is at the highest level in more than two decades

Extreme market valuations as measured by EV/EBITDA , among other metrics, simply mean lower future returns, that’s the simple but highly troubling conclusion of SocGen’s Global Quantitative Research team headed by Andrew Lapthorne. In a research note published at the beginning of this month, the team takes a look back at the market performance during the first quarter, which was broadly positive. Global equity markets enjoyed a strong first quarter, rising by 5.9% with all regions seeing good US dollar gains. Emerging Markets & Pacific ex-Japan were the clear leaders, both posting double-digit gains during the quarter, followed by the…