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Thursday, July 25, 2013

Philippine Composite Index (PCOMP:IND) - Where Are We In Terms of Valuations?

PSEi seems to be struggling to breach 6800.

We think there is a good reason for that simply because we cannot hide the cold fact that at current prices, our market is in the higher end (expensive) of the "value" range as measured by Current and Forward PE, Price to Book, and Dividend Yield.

Picture paints a thousand words. See for yourself.

Price = White
Current PE = Red
Forward PE = Orange
Price To Book = Blue
Div Yield = Yellow


*click to enlarge* 

I'm not a forecaster of price, so I'm not saying that the market will crash nor it will go up.

I'm just an observer of markets and I take risk on companies when their price is is justified if not cheap vs their long term value. However, as an Investor I would really prefer when stocks are selling cheap.

I saw a funny meme in FB posted by Nel Uy. Hahaha.



Happy investing. =)

PD: I'm still long PH stocks.

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