This month, we assess the impact of fund outflows from UK micro and smallcap stocks on the technology sector. Our analysis indicates that every market cap segment within the sector has outperformed lower market cap segments over the last twelve months and is valued at higher multiples. Data indicates that each £100m of market cap supports 14% price outperformance and 1.8x EV/ EBITDA multiple premium. Continued fund flows out of small caps could extend these price and valuation trends.
