Is India a high valuation market? (Live mint.com 14th Jan 2008)Everybody knows that India is an expensive market. But just how pricey is it compared to other markets? The S&P/Citigroup Global Equity indices show that, according to IBES (a global database of analysts’ forecasts), the Indian market was valued at a one-year forward price-earnings multiple of 25.62 as on 31 December 2007. That’s the third highest valuation for all the markets covered by the group of indices. The highest valuation among emerging markets is for Morocco, which shows a one-year forward multiple of 30.11. China is third at a multiple of 23.46. (That’s assuming Nigeria’s multiple of 185.71 is a statistical quirk). Among the developed markets, Slovenia, at a multiple of 31.79, stands out in solitary splendour.
Of course, the high valuation is also a reflection of a high return on equity (RoE). India’s RoE is 19.77, according to the S&P/Citigroup numbers, well above China’s 15.31. But then, several other countries, including South Africa and the UK, have higher RoEs but much lower valuations. More
Of course, the high valuation is also a reflection of a high return on equity (RoE). India’s RoE is 19.77, according to the S&P/Citigroup numbers, well above China’s 15.31. But then, several other countries, including South Africa and the UK, have higher RoEs but much lower valuations. More
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