Excluding Brazil, security analysts think that the other global markets listed below will deliver average earnings growth of 15% in 2007. For Brazil, analysts expect earnings to more than triple, on average, for the constituents of the Bovespa index.
Brazil’s expected growth rate is an unusually large number, even if sharp percentage increases for a few big companies helped fuel this figure. For example, security analysts expect utility Cteep to post a 388% earnings gain this year.
With such great expectations, the Bovespa index now trades at a very rich 62 times estimated 2007 earnings. Over the next three to five years, Thomson IBES analysts see more modest annualized profit gains of only 12%.
Not all of Brazil’s Bovespa constituents carry such rich multiples. The companies, highlighted in our second table, trade on U.S. exchanges as American Depositary Receipts and sell for less than 20 times their 2007 consensus earnings forecast. Analysts expect all these companies to deliver annualized gains of at least 14% over the long term.
Telecommunication services provider
Global Scorecard
Country |
Value* |
Price Change (%)* |
YTD Change (%)* |
52-Week Change (%)* |
2007 Vs. 2006 Est. Earnings Growth (%)** |
2007 Est. P/E** |
PEG** |
Price/Book Value |
Dividend Yield |
Brazil Bovespa |
28,820.5 |
3.1% |
38.4% |
72.1% |
214.2% |
62 |
5.1 |
3.6 |
2.2 |
Canada TSX |
13,407.3 |
3.2 |
20.9 |
28.5 |
16.0 |
17 |
1.9 |
3.1 |
1.4 |
China Shanghai Composite |
706.8 |
1.0 |
106.2 |
232.4 |
31.9 |
30 |
1.3 |
5.6 |
0.9 |
France CAC 40 |
7,681.7 |
2.8 |
5.1 |
17.6 |
8.3 |
14 |
1.8 |
2.3 |
2.5 |
Germany DAX |
10,398.2 |
1.6 |
19.5 |
38.1 |
16.5 |
14 |
1.6 |
2.3 |
2.1 |
Hang Seng Composite |
463.2 |
3.1 |
28.5 |
57.5 |
17.9 |
17 |
1.1 |
2.6 |
2.0 |
India BSE 100 |
199.3 |
1.3 |
26.3 |
50.8 |
8.9 |
16 |
0.6 |
4.6 |
1.0 |
Italy Mibtel |
42,156.1 |
1.4 |
0.2 |
13.8 |
6.0 |
14 |
1.7 |
2.2 |
3.4 |
Japan Nikkei 225 |
140.2 |
-1.4 |
-3.0 |
3.2 |
24.1 |
17 |
1.2 |
1.7 |
1.3 |
Korea Kospi Composite |
2.0 |
0.3 |
30.6 |
41.9 |
17.2 |
13 |
0.8 |
1.9 |
1.4 |
Mexican Bolsa |
2,709.3 |
-0.3 |
10.9 |
39.3 |
6.9 |
15 |
0.6 |
3.5 |
1.4 |
Russia RTS |
1,943.3 |
2.4 |
1.1 |
24.1 |
12.9 |
12 |
0.9 |
2.6 |
1.8 |
Singapore Straits Times |
2,339.2 |
2.2 |
20.2 |
46.6 |
8.6 |
16 |
0.8 |
2.4 |
2.3 |
Spain IBEX 35 |
19,223.1 |
0.7 |
3.0 |
23.4 |
12.7 |
15 |
1.4 |
3.1 |
2.7 |
Taiwan Taiex |
273.1 |
0.1 |
13.7 |
36.2 |
31.0 |
14 |
0.5 |
2.2 |
3.6 |
United Kingdom FTSE 100 |
12,651.2 |
0.9 |
3.9 |
13.8 |
7.4 |
13 |
1.3 |
2.6 |
3.1 |
United States S&P 500 |
1,484.3 |
2.1 |
4.6 |
12.8 |
12.1 |
16 |
1.1 |
2.8 |
1.7 |
Values as of Sept. 14.
*Measured in U.S. dollars.
**Calculation based on local currency estimates.
YTD: Year-to-date.
P/E: Price-to-earnings ratio.
PEG: Estimated 12-month forward P/E divided by long-term earnings-per-share growth forecast.
A PEG less than 1.0 may be an indication that a market or stock is currently selling for less than its long-term growth prospects.
Sources: Thomson One Analytics; FT Interactive, Thomson IBES and Country Aggregates via FactSet Research Systems
Company |
Price |
52-Week Price Change |
2007 Estimated P/E |
EPS Growth* |
PEG |
$24.93 |
49% |
13 |
16% |
0.8 |
|
43.11 |
40.2 |
12 |
17 |
0.7 |
|
32.31 |
55.4 |
11 |
15 |
0.8 |
|
21.04 |
58.2 |
10 |
17 |
0.5 |
|
35.61 |
97.5 |
19 |
20 |
0.7 |
|
116.12 |
54.9 |
11 |
14 |
0.7 |
Values as of Sept. 14.
All shares of companies above trade as American Depositary Receipts (ADRs).
*Annualized; projected over next three to five years.
P/E: Price-to-earnings ratio.
PEG: Estimated 12-month forward P/E divided by long-term earnings-per-share growth forecast.
A PEG less than 1.0 may be an indication that a market or stock is currently selling for less than its long-term growth prospects.
Sources: Thomson One Analytics; FT Interactive and Thomson IBES via FactSet Research Systems