A recent report from Credit Suisse Asia looks at valuations specifically PB and PE Ratio Emerging Markets based on both current and five year averages. Unfortunately the report does not contain any data, however, the chart itself is a bit explanatory. Many countries are trading at under a 10 PE TTM and five year average and a PB under or close to one for both current and the five year average. Although the macro concerns are well known in many of the countries below, it sure beats the heck out of buying some 3X inverse leveraged loan REITs. Additionally, Korea stands out as both cheap and more stable. In one of the less publicized speeches at the Ira Sohn Conference, Li Lu made the case for buying South Korean preferred shares. Additionally, the brave may want to check out China, Egypt, Russia, Pakistan, the Czech Republic. In terms of sector, energy is the cheapest one followed by financials. How do the valuations compare with the rest of the world?
PB and PE ratio emerging markets chart
We do not have a chart on every country but Credit Suisse in another report maps out PB and PE ratio emerging markets and developed countries in Asia. Interestingly, Singapore looks cheap as does Taiwan and the ‘star of Asia’ the Philippines. We will have an update on valuations in Europe soon but in the meantime here are some other places to look in Asia for value.