BofA: Small Caps' Valuation Suggests Long-Term Outperformance

Monday, Apr 7, 2025 12:48 pm ET1min read
IWM--

BofA analysts note that small cap valuation is a better long-term indicator for returns, despite being a poor short-term indicator. As of month-end, multiples suggest 10% annualized returns for small caps (NYSEARCA:IWM) over the next 10 years.

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