Stocks of small UK companies are the “most unloved” in the world, according to analysis by Abrdn, as investors have pared their UK holdings and invested in US tech giants.
The forward price/earnings ratio for MSCI’s UK small cap stock index fell to 24.3 per cent below its 10-year average at the end of January, the largest discount for any major region in the world, according to the asset manager.
Investors use the forward price/earnings ratio — which compares a company’s value to its expected profits — as a yardstick for how expensive shares are historically, or against other stocks.
The findings come as chancellor Rachel Reeves looks to boost retail and institutional investment in the UK, after a period of sustained…
