EQUITY VALUATIONS WEEKLY - Equities in the Central European region are currently the most attractive

    • Equity valuations

In our opinion, equities in the Central European region are currently the most attractive region. The valuations of the Central European stock index CECEEUR show a clear picture.

EQUITY VALUATIONS WEEKLY - Equities in the Central European region are currently the most attractive

P/E ratio at 14.0 is 5% below the long-term average, P/B ratio at 1.1 is 25% below the long-term average and P/S ratio at 1.0 is 17% below the long-term average. The total composite valuation thus reaches the value of -16% and is therefore the lowest of all monitored regions. In addition, the dividend yield of the Central European stock index is also highly above average at 3.0%.

We fully reflect this relative attractiveness of Central European equities in our global equity allocation, within which we have the Central European region highly overweighted.

 

Michal Stupavský
Investment Strategist at Conseq Investment Management, a.s.

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