Fundamental Analysis for Central and Eastern Europe Emerging Markets

Yesterday I posted about new ETF iShares MSCI Eastern Europe [London: IEER). Let's have a look to key fundamental indicators of countries included in the fund. Russian index RTX, Polish WIG, Hungarian BUX and Czech PX.

Country/Region	DivYld	P/B	P/CF	FY0 P/E	Trailing P/E	FY1 P/E	P/Sales	ROE
Russia	0.98	2.24	13.91	13.22	10.35	11.6	1.73	18.48
Poland	2.78	2.25	9.14	12.73	12.39	11.94	1.26	17.64
Hungary	2.6	2.37	6.4	10.23	9.83	9.36	1.36	23.18
Czech Republic	2.96	2.82	8.52	15.49	18.39	13.62	2.27	18.22

Central European countries provide high dividends. On average dividend yield in Emerging countries is 1.91. Also P/E ratios are better than average. Lower P/E valuation for Hungary is mainly influenced by low GDP growth which is already one year below 1%. Hungarian economic outlook is the worst in region. See below how these emerging markets stand vs global fundamental picture.

Country/Region	DivYld	P/B	P/CF	FY0 P/E	Trailing P/E	FY1 P/E	P/Sales	ROE
Global	2.5	2.19	8.74	14.8	15.4	13.69	1.13	14.92

Comments

[Alex Filonov:]

What is Russia doing here? Poland, Hungary and Czech Republic are EU members with normal market economy. Russia is a strange mix of KGB power and oligarchies. I don't know if you can even trust current Russian statistics.

2008 Jun 03 11:57 AM

[Vlada Kynsky:]

Article is about countries included in ETF Eastern Europe and their fundamentals. That's why Russia is there.
You hardly find ETF or fund for Eastern Europe without Russian assets.

2008 Jun 03 01:02 PM

[Everyday Fi...:]

Great play on the region is CEDC. I'm long after watching it run the past 50%.

everydayfinance.blogsp...

2008 Jun 03 02:14 PM

[fxtrader07:]

these quantitative market statistics may be a point to start, but what i am missing completely is the analysis here.

2008 Jun 04 06:37 AM

[Alex Filonov:]

To Vlada:

"You hardly find ETF or fund for Eastern Europe without Russian assets"

That's the problem. I'd gladly invest into Eastern Europe without Russia. No such luck though...

2008 Jun 05 10:58 AM

[bsharvy:]

You could go long a eastern Europe fund, and short a pure Russian fund.

2008 Aug 25 02:56 AM