Valuations in the Test & Measurement and Industrial Automation (TM&IA) sector continue to track the broader market with current valuations above the trailing 3-Year average (Chart 1).
Valuations EV/EBITDA. Source: CapitalIQ.
However, stock price performance for the broader market has consistently outperformed each of the industrial technology indices. This is largely due to the technology sector's heavy weighting within the S&P 500 and skyrocketing valuations of a select group of tech names (Chart 2).
Source: CapitalIQ.
Mesirow Financial, Inc., member FINRA, SIPC.