Hungary Equities Still The Value Trade, Russia and Turkey Cheap But Risky

• In this chart, we rank the 16 EM equity markets (15 countries + the MSCI 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 economies, we simply add the rank each time; hence, the lowest score a sector can have is 3 (the cheapest) and the highest score is 48 (most expensive).
• As expected, Turkish equities are the cheapest amid elevated economic and political uncertainty (with high 'staff turnover' at the CBRT that has been weighing on the TRY).
• Russian equities are also cheap according to this analysis (as expected), but remain risky as rising price volatility generally tends to weigh sharply on the RUB.
• Surprisingly, even though Hungarian equities have been trading at historical highs in the past month, they still appear cheap (P/B of 1.35 and PE ratio of 12.93 relative to 1.77 and 16.79 for MSCI EM Index).
• On the other hand, Indian equities are the most expensive with a value score of 47 out of 48 (second most expensive from PE ratio approach after Czech Republic), followed by Indonesian equities.

Source: Bloomberg/MNI