This article focuses on a composite view of the P/E ratio to look at how AEJ (Asia Ex-Japan) (AAXJ) equities are currently trading compared to recent history, as well as bringing in some longer term context. The main objective is to consider whether there is still value in AEJ equities, and our conclusion is that although valuations have re-rated significantly, there may still be some scope for further upside.
The chart comes from an exclusive report on Asia Ex-Japan equities, which along with valuations also reviewed the price/ policy/macro picture.
The chart