The ‘valuation gap’ between stock market winners and losers is highest in 20 years, according to Goldman Sachs

by Maggie Zuri

If you’ve noticed stock market “winners” and “losers” more lately, it’s because the gap between valuation multiples among U.S. companies is now the widest on record since the peak of the Tech Bubble in the 2000s, according to Goldman Sachs.

Even within sectors, the “collective top 20% of stocks from every S&P 500 sector trade at a median [second fiscal year] multiple of 27x, while the bottom 20% of stocks with the same sector composition trade at a multiple of 9x,” Goldman Sachs said in note. That makes the gap within sectors the widest in 20 years, the firm said.

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