Monday, November 9, 2015

[STI Statistics] October 2015

Hi all, this is my monthly post analyzing the STI.

As of 30 October 2015

STI Closing Value: 2998.35
P/E Ratio: 12.34
P/B Ratio: 1.21
P/CF Ratio: 9.65
Dividend Yield: 3.19%

Monthly Data Series from 2008

Mean P/E: 12.27
P/E Standard Deviation: 3.05

Mean P/B: 1.45
P/B Standard Deviation: 0.212

% of time when the STI is cheaper based on P/E: 50.84%
% of time when the STI is cheaper based on P/B: 12.84%


Based on P/B, the STI is about 1SD below its mean. P/E and P/B have both rebounded higher from last month. I still do believe in hindsight that many global indicators topped in June 2014. The STI is clearly no longer expensive at this point of time. For those investing for the very long term (as you should be), now is a pretty decent time to be making monthly purchases of the STI, though it must be cautioned that it is still very possible to move much lower.

I am expecting and prepared for more downside to come, though there are many individual names that have attractive long-term valuations to me.

*Straits Times Index values from Yahoo Finance
** P/E and P/B Ratios from SPDR STI as a proxy

***Data Series 2008 - 2014 from Bloomberg
****Data Series 2014 onwards from SPDR STI as a proxy
*****Probability calculated with


  1. Hey GMGH

    Thanks for the update! It's always good know the present market valuation.

    1. Np GV, now if only someone would tell me how to find out future valuation.... haha!


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