Tuesday, September 2, 2008

Emerging markets fundamentally.

Emerging markets account for 80% world's population and 50% of GDP growth but only 8% of stock markets capitalisation.

The list below contains all emerging markets based on Standard & Poor's classification. I ran fundamental screen to get valuation with P/E FY1 (current P/E and adjusted by forecast EPS FY1).

Recently I did screening also with other indicators like Price/Book Value or Dividend Yield. As results show the lowest P/E valuation is for Pakistan stock market. Also this is the market with the highest dividend yield in the group with 5.4. Second the most discounted is surprisingly Russia which has been affected by recent political situation. P/E valuation 8 for the market with strong economic growth 7-8%. Last two countries below 10 are Turkey and Thailand. High inflation weighed on both markets. Turkey also faces significant decline of foreign direct investments.

Country FY1 P/E
Argentina 12.55
Brazil 11.33
Chile 16.23
China 14.08
Colombia 16.23
Czech Republic 14.11
Egypt 12.25
India 14.40
Indonesia 13.24
Israel 13.47
Jordan 20.91
Malaysia 11.77
Mexico 12.44
Morocco 26.85
Nigeria 17.82
Pakistan 7.91
Peru 11.16
Philippines 11.94
Poland 11.07
Russia 8.07
Slovenia 18.80
South Africa 10.59
Taiwan 10.70
Thailand 9.04
Turkey 8.88

Related tickers: (EWZ), (BZF), (ECH), (CH), (EPI), (FNI), (INP), (IFN), (ICN), (IF), (EIS), (ISL), (TAV), (EWM), (MAY), (EWW), (FXM), (MXF), (MXE), (RSX), (EZA), (TWN), (THD), (TTF), (TF), (TUR), (TKF),


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