eyeQ: Burberry, VW, Watches of Switzerland, Unilever

“Our signals are crafted through macro-valuation, trend analysis, and meticulous back-testing. This combination ensures a comprehensive evaluation of an asset's value, market conditions, and historical performance.” eyeQ

• Discover: eyeQ analysis explained | eyeQ: our smart machine in action | Glossary

This series of weekly articles uses eyeQ’s smart machine to highlight 10 stocks whose share price trades at either a discount or premium to eyeQ’s Model Value price (where macro conditions say the share 'should' trade).

A minus figure in these tables indicates a share trading below eyeQ’s Model Value, implying they are ‘cheap’ versus macro conditions. A plus figure screens as rich because the current share price is above eyeQ’s Model Value.

All companies must have a model relevance above 65%, which means the macro environment is critical and any valuation signals carry strong weight.

Here are definitions of terms used in the analysis:

Model value

Where our smart machine calculates that any stock market index, single stock or exchange-traded fund (ETF) should be priced (the fair value) given the overall macroeconomic environment.

Model relevance

How confident we are in the model value. The higher the number the better! Above 65% means the macro environment is critical, so any valuation signals carry strong weight. Below 65%, we deem that something other than macro is driving the price.

Fair Value Gap (FVG)

The difference between our model value (fair value) and where the price currently is. A positive Fair Value Gap means the security is above the model value, which we refer to as “rich”. A negative FVG means that it's cheap. The bigger the FVG, the bigger the dislocation and therefore a better entry level for trades.

Long Term model

This model looks at share prices over the last 12 months, captures the company’s relationship with growth, inflation, currency shifts, central bank policy etc and calculates our key results - model value, model relevance, Fair Value Gap.

UK Top 10

Source: eyeQ. Long Term strategic models. Data correct as at 10 July 2026.

Burberry

Most analysis of Burberry Group (LSE:BRBY) focuses on company fundamentals. After a rough few years their turnaround strategy (focusing on core “heritage” products, cost cutting, and developing e-commerce) appears to be working. But it’s worth noting that macro forces are equally important and right now, big-picture stuff such as growth and inflation explain 80% of shifts in the stock price.

The macro picture is fairly neutral right now - eyeQ model value has been moving sideways for a couple of months. BRBY sold off in late June and that’s left the stock around 4.5% cheap to our macro fair value. Not enough to trigger a bullish signal but it’s getting close and therefore worth adding to your watchlist.

International Top 10

Source: eyeQ. Long Term strategic models. Data correct as at 10 July 2026.

Volkswagen

The German car company sits just under 10% below our 77.67 euro macro fair value. That’s getting very close to a new bullish signal. But there are two health warnings.

First, our systematic process requires the fair value gap to hit a prescribed threshold in order to generate a signal. We’re not quite there yet. Second, model value is moving lower, which suggests macro conditions are deteriorating, not improving. The message here is more that Volkswagen AG Vorz-Inhaber-Akt ohne Stimmrecht (XETRA:VOW3) has already priced in a fair degree of bad news already.

The ideal scenario is eyeQ model value stops falling and starts to turn up. That, plus a cheap fair value gap, is our strongest bull signal. Right now, we only have the latter so, again, it’s one to add to your watchlist for now.