What is Fair Value? (April 2015) Short Paper
An examination of the impact on ‘fair value’ of new types of investor in the market. Using Cyclically Adjusted Price Earnings Ratio (CAPE), and a relative value model, UK market under-valuation is identified, increasing with longer anticipated hold periods and demonstrating a difference in time horizons from new investors. The gateway cities market, targeted by sovereign wealth funds, may see lower yields representing a premium for new investors and strategies.