Indian Stock Market :Most Expensive in BRIC Pack
The Indian market is more expensive than its peers among emerging
countries, with indices tracking these nations showing a lower multiple
of earnings than India.
The Morgan Stanley Capital International (MSCI) India index is trading at a price-to-earnings multiple (or P/E) of 17.72, according to Bloomberg data. This means that investors are valuing it at nearly 18 times its annual earnings. The equivalent figure is 11.99 for the MSCI Emerging Marketindex.
India’s earnings multiple is also the highest amongst the BRIC pack, an acronym for major emerging market economies encompassing Brazil, Russia, India and China. Brazil is trading at a P/E of 15.48, China at 8.98 and Russia at 4.73.
The premium has also risen if one looks at other valuation indicators such as those measuring price as a multiple of the companies’ assets or book value (P/B), or in relation to profitability measures such as its return on equity (ROE).
In fact, the relation between price/book and ROE for
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The Morgan Stanley Capital International (MSCI) India index is trading at a price-to-earnings multiple (or P/E) of 17.72, according to Bloomberg data. This means that investors are valuing it at nearly 18 times its annual earnings. The equivalent figure is 11.99 for the MSCI Emerging Marketindex.
India’s earnings multiple is also the highest amongst the BRIC pack, an acronym for major emerging market economies encompassing Brazil, Russia, India and China. Brazil is trading at a P/E of 15.48, China at 8.98 and Russia at 4.73.
The premium has also risen if one looks at other valuation indicators such as those measuring price as a multiple of the companies’ assets or book value (P/B), or in relation to profitability measures such as its return on equity (ROE).
In fact, the relation between price/book and ROE for
posted by Bramesh at
6:53 AM
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