A recent Bloomberg report cited money managers finding bargains giving PE comparison amongst sectoral picks or developed markets vs. emerging markets. It mentions TAT MOTORS as cheaper compared to Germany’s Volkswagen. It remains to be seen if this thing become a trend and weather foreign money managers make it a part of analysis too and weather domestic investor cheer this. At least, we find this significant to put before you.
Below is the excerpts from the article followed by link
June 4 (Bloomberg) -- The biggest drop in emerging-market stocks since October 2008 is giving money managers the chance to find bargains in world-class companies from Sao Paulo to Moscow that are leading their peers in profit growth.
Itau Unibanco Holding SA, Latin America’s largest bank by market value, trades at a 75 percent discount to Wells Fargo & Co. as analysts say the Brazilian lender will increase profit three times faster. Tata Motors Ltd.’s price-to-earnings ratio is 23 percent less than Volkswagen AG’s even though profits at the Mumbai-based maker of the world’s cheapest car are rising twice as fast. OAO Rosneft, Russia’s largest oil producer, is valued at the lowest on record versus Canada’s EnCana Corp.
The rout that pushed down the MSCI Emerging Markets Index 9.2 percent last month, driven by concern Europe’s debt crisis will slow global growth and developing-nation earnings, left many companies undervalued, according to BlackRock Inc., Morgan Stanley and Templeton Asset Management Ltd. Low debt levels will help emerging economies to grow 5 percent a year even if Europe and the U.S. shrink, Ashmore Investment Management Ltd. said.
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