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Contrasting Valuation Ratios in Cyclical and Non-Cyclical Sectors
December 2, 2023
How do valuation ratios differ between cyclical and non-cyclical industries?
Valuation ratios in cyclical industries, like automotive or construction, often show more significant fluctuations due to economic cycles impacting their earnings. In contrast, non-cyclical industries, such as healthcare or utilities, tend to have more stable earnings and, consequently, more consistent valuation ratios.
Tags : Valuation Ratios , Cyclical Industries , Non-Cyclical Industries