Small Cap Premium Rises As Small Caps Outperform In May

June 06, 2013 BY Jun Zhu and Eric Weigel <  

Small Caps are selling at a 14% valuation premium relative to Large Caps, using non-normalized trailing operating earnings (8% last month). Using estimated 2013 operating earnings, Small Caps are selling at a higher valuation premium of 22% (16% last month).

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