Monday, 29 March 2010
Undervalued good quality stocks in KLSE
Is KLSE over-valued? What is KLSE market PE?
The historical market PE is around 10 to 20, averaging 15 over the long term. With the KLSE index at 1312.48 recently, the market PE was 19.23 (Source: iCap website). This market PE was at the upper end of the normal market PE range. The index-linked counters are probably trading at fair or high value.
However, if one were to browse through the stock section of our local papers, there are still many stocks trading below ttm-PE of 10. Many stocks maybe priced such due to lack of 'popular support' or 'neglect'. They maybe 'fallen' stocks. Amongst these, there are good quality stocks that are undervalued even in the present market.
If you discover any gem(s), please share here.