Technology: Valuations Painting Overly Rosy Scenarios
Semiconductor equipment appears overvalued as booming near-term orders won't last forever, while some value remains in SaaS vendors.
Overall, we view the tech sector as overvalued today at a market cap weighted price/fair value of 1.09 as of the end of August, versus 1.13 as of the end of May and 1.06 at the end of February. The Nasdaq index rose about 4% from the end of May to the end of August.
Brian Colello, CPA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.