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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- In this chart, we rank the 11 EM sectors from 'cheapest' to the most 'expensive' ones based on the Price-to-Book, Price-to-Sales and Price-to-Earnings ratio.
- To compute the score of each EM sectors, we simply add the rank each time; hence, the lowest score a sector can have is 3 (the cheapest) and the highest score is 36 (most expensive).
- Not surprisingly, real estate appears as the cheapest sector (along with energy) according to our scoring method, as the collapse in China Evergrande stock valuation in recent months has been weighing in the entire sector.
- Beijing's strict deleveraging demands targeting the housing development sector combined with narrowing options for raising funds have generated a sharp selloff in Chinese developer Evergrande, which price-to-book ratio collapsed from a high of 4.5 in 2017 to 0.40 today.
- The most expensive sector in the EM market is Health Care (maximum score of 36), with a PE ratio of 45.68 and a price to book of 5.78, followed by Consumer Staples (29) and Telecom (28).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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