IOI DataBite: Relative Valuation for Large Cap Consumer Staples

Drawing from the data we used for our DataBite on Coca-Cola , we created a heat map of relative valuation for the thirty-three large cap consumer staples companies.

[caption id="attachment_4040" align="alignnone" width="1193"] Figure 1. Source: YCharts (data), IOI Analysis.[/caption]

In this graphic, market capitalization is represented by the size of the boxes. The color is meant to represent divergence of present price-to-OCP from its historical mean (OCP or Owners' Cash Profits is IOI's preferred measure of profitability). Red shading indicates that the present price-to-OCP is higher than the 10-year mean; green indicates that it is lower.

Those of you who have taken IOI training courses know that we don't place a lot of weight on quantitative screens like this, but sometimes, they can be helpful to identify companies for deeper investigation.

The data we used to create this map is here . For the historical average, we used data starting in the third calendar quarter of 2000, extending through the first calendar quarter of this year. http://hvst.co/29TlkEJ