Even as world equity has rebounded from its March’s low, many stocks are still cheap relative to its historical valuation. Book value multiple remains depressed as earnings multiple stayed at its historical average, as profitability declined significantly this year for majority of the market.
Our three main top pick markets, Mexico, Turkey and Chile, remain attractive. Both the currency remains cheap and equity valuation is depressed. Aside from that, U.K., Philippines, and Colombia are getting attractive as well. The GBP and COP are on the cheaper side, while PHP is expensive.
Below is the list of all country valuation, as per closing of July 9th, 2020: