Skip to main content

Will lower valuations tempt investors back?

The plunge in emerging market equity prices has driven the price/earnings ratios of the MSCI Emerging Asia Index and MSCI EMEA Index down towards their lowest levels since late 2011 and the earlier financial crisis. As a result, they are now much further below their ten-year averages than the aggregate price/earnings ratio of developed market equities. By contrast, valuations in Latin America generally remain stretched by past standards. 

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.