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These industry valuation averages are based on MSCI data.
Basically, valuation averages, under this line of thinking are perhaps just historical accidents.
The rise of the Chinese stock market in recent years has seen valuation averages for technology stock skyrocket to 220 times reported profits prior to the June 2015 tumble.
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"You have a very unusual combination here of below-average valuation and above-average growth," he says.
Like Walgreens, AT&T is an example of a company whose fundamental performance is above-average but whose valuation is below average.
Note that companies recently added to the index carried higher valuations, on average, than those dropped.
Where both methods produced reasonable valuations, we averaged them; for moneylosing segments we used only the sales multiple.
So future returns are likely to be lower than the previous norm.A higher-than-average valuation implies that investors expect better-than-average profits growth.
This combination of above-average growth and below-average valuation presents a unique buying opportunity for dividend investors.
We've spent at least a decade above average valuation levels, and that implies some time spent below the average level is possible too.
Tepid trend growth and the absence of strong long-term valuation support suggest average equity returns are also likely to be more modest, on average, in the coming years than historic averages.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com