Finding Value in EM Markets: Turkey, South Korea and Hungary Are The Cheapest Markets

• In this chart, we rank the 16 EM equity markets (15 countries + EM index - MXEF Index) from 'cheapest' to the most 'expensive' ones based on the Price-to-Book, Price-to-Sales and Price-to-Earnings ratios.
• To compute the score of each EM equity markets, we simply add the rank each time; hence, the lowest score that a EM country can have is 3 (the cheapest) and the highest score is 48 (most expensive).
• As expected, Turkish equities are the cheapest according to our scoring model (lowest score of 3) as the TRY weakness combined with elevated economic and political uncertainty have been weighing on Turkish assets.
• South Korea and Hungary are second and third cheapest equity markets even though both equity markets have recently been trading at new all-time highs.
• India is the most expensive equity market according to our scoring model, with current price to book, PE and price to sales ratios of 3.67, 29.32 and 2.78, respectively (vs. P/B of 2, PE of 17.38 and P/S of 1.69 for the EM index).

Source: Bloomberg/MNI