ULVR:GBR – Market expectations are for ULVR to see record-high Uniform ROA, driven by optimism regarding the firm’s pricing power and growth in emerging markets

• • • Unilever PLC (ULVR:GBR)is currently trading above historically average valuations relative to UAFRS-based (Uniform) Earnings, with a 22.4x Uniform P/E. At these levels, the market is pricing in expectations for Uniform ROA to improve from 28% in 2017 to 31% through 2022, representing levels not seen before
    • Specifically, the market appears optimistic about the firm’s ability to improve their pricing power going forward, which has been flat for two consecutive quarters. Furthermore, the market seems to be pricing in expectations for further growth in the emerging markets, which saw 5% growth during the quarter versus only 3% in North America, and flat growth in Europe