KJPP - Paulus

October, one of the worst months for stock markets, is over and Standard & Poor's have published statistics for major stock market indices. I picked a group of emerging markets from the S&P Global Equity Indices and added four fundamental indicators - Dividend yield, Price / Book Value, Price / Cash flow and Price / Earnings.

On average, for emerging markets as a group, dividend yield is 4.2, P/BV is 1.9, P/CF is 9.5 and FY1 P/E ratio is 9.5. In comparison, U.S. dividend yield is 3.14, P/BV is 1.76, P/CF is 6.93 and FY1 P/E ratio is 11.8.

For both emerging markets and U.S. markets, this level of fundamental valuation has not been seen in decades. You can also check my last post about stock markets valuation two months ago, just before global sell-off had been triggered.
Div.Y.  P/BV   P/CF  P/E

Argentina       1.8     1.2     4.3     5.5
Brazil              2.2     1.6     4.6     6.7
Chile              3.5     1.9     6.5     12.2
China             3.3     1.4     5.8     8.2
Colombia        2.3     1.1     8.6     12.8
Czech Rep      6.2     2.1     6.7     8.8
Egypt            5.5     1.7     5.1     6.8
India             1.9     2.1     8.0      10.0
Indonesia       5.3     1.6     5.4     7.2
Israel             4.0     1.6     7.2     10.1
Jordan           1.7     1.8     6.1     15.2
Malaysia         5.6     1.3     5.9      9.6
Mexico          2.1     2.0     4.9      9.5
Morocco        2.8     3.8     20.8    20.5
Nigeria          4.3     3.1     4.1      9.3
Pakistan        6.4     1.7     5.5      7.3
Peru             6.7     2.1     7.1      7.7
Philippines     4.3     1.3     5.1      9.9
Poland          5.4     1.3     5.5      7.5
Russia           2.7     5.8     81.7     3.5
Slovenia        2.2     1.5     11.5    12.8
South Africa   4.7     1.8     6.4      8.1
Taiwan         7.7     1.1     3.9      9.6
Thailand        7.7     1.0     3.8      5.5
Turkey          5.1     1.1     3.8      5.6