In a comprehensive research report, The European Smaller Companies Trust examine the results of over 3,000 companies across Europe and the UK in order to assess the historic performance, contemporary landscape and long-term outlook for smaller European companies.

Key Takeaways

  • European smaller companies have returned 893% to investors in the last 20 years, compared to 195% for the FTSE 100
  • Information asymmetry for smaller companies can lead to mispricing, which affords active managers greater scope for finding hidden gems
  • European smaller company median price/earnings ratio is 20.7x, only slightly higher than large caps, but for much more growth
  • Smaller companies have access to a diverse range of sectors, themes and geographies