Global revenues at UK prices

Over the past two decades, the UK has gone from a favoured destination for capital to being avoided by global investors. The global financial crisis exposed the fragility of a growth model overly dependent on leverage and finance, with price-to-book ratios falling well below peak levels. Austerity and political uncertainty also deterred investors, and the UK was already trading at deep discounts compared with other countries post-Covid. However, after years of disappointment, a long-term opportunity may have emerged. UK equity valuations are below global averages, but history suggests that when...