Posts by Andrew Stotz
WACC in Asia: Cost of Equity Matters Most
Chart of the Day: Looking at 500 non-financial companies in Asia. Considering the relatively low percent and relatively low cost of debt, cost of equity is the significant component of WACC.
Read MoreBrexit: EU Without UK Moves to Second from First in World Trade
Chart of the Day: EU holds the largest share of the world trade. Leaving the EU, UK would become 3% of the world trade, rather than being part of the largest block.
Read MoreYouth Have Been Driving China; Soon Will Drive India, Indonesia, Pakistan, and Philippines
Chart of the Day: China has the largest labor force, but India has more young people about to join. Japan has the largest percentage of old folks. Youth in the labor force will drive consumption growth throughout most of Asia.
Read MoreRoom for Growth – Only 5% of Population in Asia Has GDP Per Capita Over US$10,000
Chart of the Day: Singapore and Hong Kong have the highest per capita GDP. China’s per capita GDP is impressive given the size of the population. India could expand per capita GDP for decades if helped by gov’t policy.
Read More1% Population Growth in Asia, India Growing 2x China
Chart of the Day: India growing 2x China. Above average growth in Afghanistan, Pakistan, and the Philippines. Korea, Thailand, and Taiwan have the slowest growth. In Japan, the population is shrinking.
Read MoreEmerging Markets Return More For The Price
Chart of the Day: ROE/PB shows how much return you get for the price you pay. US is most expensive and the gap has been widening. Unless this reverses, it makes emerging markets’ attractiveness rise.
Read MoreUS PEG Ratio Expensive, Not Emerging Markets
Chart of the Day: Investors are willing to pay a high price-to-earnings ratio if earnings are rising. Unless earnings positively surprise then the US is expensive based on PEG.
Read MoreFVMR: Thailand Second Most Attractive in Asia, Malaysia Not So Attractive
Chart of the Day: Thailand is second most attractive in Asia, moderate to attractive on all FVMR elements. Malaysia appears to be a less attractive, low ROE of 9.7% and high PE of 16.3x.
Read MoreWarning: Dream Factor Riding High in US
Chart of the Day: Over 13 years Inflation contributed 32% of 171% market return. Book value growth contributed 33%. Dividends contributed 19%. The Dream Factor contributed 16%.
Read MoreUS Dream Factor Is High, Book Value Growth Is Low
Chart of the Day: Stock returns are driven by four main factors. US companies have had almost no growth in book value over the last three years. The “Dream Factor” has been rising as investors push up valuation.
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