FVMR Snapshot
Emerging Markets Still Look Relatively Cheap
Global Equity FVMR Snapshot: Emerging markets still look relatively cheap on PE and PB. Global markets have an ROE of 12.8%, driven by the US. Excluding US, the ROE is only at 10.6%.
Read MoreGlobal Sectors: Massive Profitability in Health Care
The global ROE is about 13%. Massive profitability in Health Care at 20% ROE. Telecom has been hit the hardest in terms of price return. The highest volatility has been in Energy and Materials
Read MoreMalaysia: A Market with Lower Volatility
Malaysia tends to be a bit expensive for low profitability and low growth, but the risk is also low. The highest ROE sector right now in Malaysia is the telecom sector, but it’s also expensive.
Read MoreThailand: Loved even with Low Expectations
This gives you an idea of what’s going on in Thailand. Basically, it’s about in line with the rest of the world, except that the EPS expectations for Thailand are half of the world’s expectations for 2017.
Read MoreIndia: High Funding for Future Growth
India Equity FVMR Snapshot: You’re paying slightly higher than the world average price, but you’re getting steady earnings growth in return due to high gearing.
Read MoreSweden: Land of Flat Earnings & Fat Dividends
The first thing we can see is that the ROE of Swedish companies is about in line with the rest of the world. Dividend payout ratios are much higher, which is nice. They pay out a lot of dividends.
Read MoreDon’t Rush into Korea Just Because It’s Super Cheap
So the profitability of Korean companies is pretty low. In fact, look at the number of sectors that have ROEs below 10% ─ one, two, three, four, five, six, seven. We can say that it is a low ROE country, for sure.
Read MoreRelative to Global Market, China Still Expensive
The first thing we can see is that the ROE of China is about 10% to 11% versus the world, which is at 13% – a slightly lower ROE. When we exclude Financials, the Chinese market is trading at about 33x for about a 14% growth rate.
Read MoreUS ROE 3 Percentage Points above World Average
We can see an ROE of about 13% across the world and a very impressive 16% ROE in the U.S. We can see about a 2x PB for the world versus almost a 3x for the U.S.
Read MoreDeveloped Markets Are a Little Bit More Expensive
Global Equity FVMR Snapshot: Right now, the PE for the emerging markets is about 12x and PE for the developed markets is about 17x. Developed markets are a little bit more expensive.
Read More