Small caps sit three P/E points below large caps. Join Emanuel Datt on 18 November to discuss which companies deserve capital.
~ 1 min. read
By: Datt Capital
Australian small caps are trading about three P/E points below large caps on 12-month forward earnings. Since 1996, the gap has reached this depth in only three earlier periods: 2000, 2009 and 2013. This time it has held near those levels for two years.
Source: Bloomberg, S&P Dow Jones Indices. Data as at 28 October 2026.
A discount this wide shows the segment is cheap. It doesn’t show which companies within it are mispriced and which are cheap for good reason. On Wednesday 18 November, Emanuel Datt, Chief Investment Officer, will explain how Datt Capital tells the two apart.
In Emanuel’s view, “We are observing extreme market dispersion between large and small cap companies, which is providing opportunity for skilled small cap investors.”
Registered attendees can send questions ahead of the session and will receive the replay.
Disclaimer: This article does not take into account your investment objectives, particular needs or financial situation; and should not be construed as advice in any way. The author may hold stocks discussed in this article. Forward-looking statements reflect the author's views at the time of writing and are subject to change. Past performance is not indicative of future results.
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Datt Capital Pty Ltd
ABN 37 124 330 865
AFSL 542100
390 St Kilda Rd, Melbourne VIC 3004
© COPYRIGHT 2025. ALL RIGHTS RESERVED.
Datt Capital Pty Ltd
ABN 37 124 330 865
AFSL 542100
390 St Kilda Rd, Melbourne VIC 3004
© COPYRIGHT 2026. ALL RIGHTS RESERVED.
The information on this website is prepared and issued by Datt Capital Pty Ltd (ABN 37 124 330 865 AFSL 542100) (Datt Capital). Unless otherwise stated, the information is intended for wholesale clients within the meaning of section 761G or 761GA of the Corporations Act 2001 (Cth) (Corporations Act).
Datt Capital is the investment manager of the Datt Capital Absolute Return Fund (APIR FHT3309AU), the Datt Small Companies Fund Class A (APIR FHT4217AU), and the Datt Small Companies Fund Class B (APIR FHT4217AU) (together, the Funds). Fundhost Limited (ABN 69 092 517 087 AFSL 233045) (Fundhost) is the issuer and trustee of each Fund.
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