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India most costly equity market

According to a new report from Citigroup, India is the most expensive market in Asia-Pacific for 2007.
PTI | By HT Correspondent, New Delhi
UPDATED ON JUL 22, 2007 09:33 PM IST

India is the the most expensive equity market in Asia-Pacific region for 2007, excluding Japan, though the country can give the second-highest returns to investors after Indonesia, says a study by the global brokerage firm Citigroup.

According to a new report from Citigroup, India is the overall most expensive market in the region for 2007 after considering various metrics such as price-to-earnings ratio, book value, dividend yield, cash flow, return on equity and enterprise value.

Citigroup has termed India more expensive than China, Hong Kong, Philippines and Australia, while it has named Thailand, Korea, Taiwan, Indonesia and Malaysia as the cheapest.

On individual metrics, India has been ranked as the second-most expensive in terms of price-to-earnings ratio and price-to-cash flow ratio based on 2007 estimates, while it is the most expensive in terms of price-to-book value and dividend yield for the year.

Citigroup expects India to give the second highest return on equity this year -- a gain of 20.8 per cent, after a 25.2 per cent return in Indonesia.

The Bombay Stock Exchange's benchmark index Sensex has grown by more than 54 per cent in the past one year from about 10,000-points level to over 15,500 points currently.

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