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

As of 30 June 2015

STI Closing Value: 3317.33
P/E Ratio: 13.35
P/B Ratio: 1.28
P/CF Ratio: 10.32
Dividend Yield: 2.78

Monthly Data Series from 2008

Mean P/E: 12.28
P/E Standard Deviation: 3.10

Mean P/B: 1.46
P/B Standard Deviation: 0.21

% of time when the STI is cheaper based on P/E: 63.35%
% of time when the STI is cheaper based on P/B: 19.14%


The P/E and P/B ratios are still telling conflicting stories about the index. Based on P/B, the STI is almost 1SD below it’s mean. The STI does not look significantly cheap nor expensive by any historical measure. Valuation-wise, it seems to be getting cheaper since peaking in July 2014, which was actually a peak for many many indicators globally.

Considering how the index has …