On the other hand, Price/Earnings Ratio (PE Ratio), while not perfect, at least gives a more meaningful view of the Singapore stock market.
Price/Earnings Ratio
The price-to-earnings ratio, or P/E ratio, is an equity valuation multiple. It is defined as market price per share divided by annual earnings per share. – from Wikipedia
Did you know that you can also find out the PE Ratio of the Singapore Straits Times Index? Head over to Bloomberg (register an account if you don’t have one) and add it to your watchlist. Then, from your watchlist, click on the Fundamentals tab and there it is! Both the web-version and the app-version can give you the PE Ratio. Simple eh?
Singapore Straits Times Index PE Ratio
As of right now, the PE Ratio of STI is estimated to be about 13.67 while the historical average PE Ratio is about 16 according to The Motley Fool Singapore......