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Chinese Stocks Offer Best Value While US Tech and Small-Cap Stocks are Among the Most Expensive

Oct 01, 2018

  • Below is a chart comparing NTM Price/Earnings with NTM Earnings Growth of the most notable global indices to assess the relative value of simply "buying" these indices
  • US tech stocks and small-cap stocks are among the most expensive across the global indices we analysis, with the Russell 2000 Index’s NTM P/E trading at 25.28x while analysts project just 9.11% EPS growth over the next 12-months; the Nasdaq Composite Index’s NTM P/E is trading at 22.87x while analysts project 10.55% EPS growth over the next 12-months. 
  • Indian stocks are also expensive relative to global stocks with the S&P BSE Sensex Index's NTM P/E trading at 19.06x while analysts project 10.72% EPS growth over the next year12-months.
  • Stocks in the Hang Seng China Enterprise Index (HSCEI) offer the best value out of global indices we analyze with the lowest NTM P/E multiple out of all global indices (8.04x) while analyst project 38.64% EPS growth over the next 12-months.

         Source: Bloomberg