FIGURE II-12 Some parts of the U.S. market are still attractively valued a. With value/growth valuations at fair value, the risks are more symmetrical k . o o b / . e c i r p h t . w o r g Historical average o . t k o o b / . e c i r p Fair-value range e u l . a Historical ratio v f o Median fair-value o i . t estimate a R erloer 0 confidence intervals               Notes: The valuation ratio is projected based on a vector error correction model and using a five-lag vector autoregression model to project the systematic drivers. Sources: Vanguard calculations, based on data from FactSet, the U.S. Bureau of Labor Statistics, the Federal Reserve Board, Refinitiv, and Global Financial Data, as of September 30, 2022. b. There may still be opportunity in small-caps k . o o b / e . c i r t p e k . r a o m. k t o o b / e c . i r p p a c . - Fair-value l l a range m Historical ratio f s. o o Median fair-value i t a estiate R                 Note: The statistical model specification is a five-variable vector error correction model, including a respective ratio of price to book, 10-year trailing inflation, 10-year real Treasury yield, equity volatility, and growth of corporate profits, estimated over the period January 1979–September 2022. Sources: Vanguard calculations, based on data from FactSet, the U.S. Bureau of Labor Statistics, the Federal Reserve Board, Thomson Reuters, and Global Financial Data, as of September 30, 2022. 50