EPHE: One Of The World's Cheapest Markets Looks Attractive
iShares MSCI Philippines ETF stands out as a compelling value play amid globally stretched valuations. U.S. and other developed markets appear fully priced, while emerging markets, especially the Philippines, offer attractive P/E ratios. EPHE provides exposure to the Philippines, currently one of the world's cheapest markets by P/E, suggesting strong relative value.
EPHE: Philippine Equities Are Inexpensive, While H2 Looks More Promising (Rating Upgrade)
Philippines' macro backdrop is improving, with accelerating GDP growth, easing inflation, and supportive monetary policy likely to boost EPHE's prospects. EPHE offers compelling value, trading at deep discounts to peers on both earnings and cash flow, alongside a decent yield above most Asian and global markets. Industrial sector recovery and favorable export conditions further support the ETF, while technicals suggest mean reversion potential after prolonged underperformance.
EPHE- Better Prospects Ahead, But Be Mindful Of The Risks As Well
The iShares MSCI Philippines ETF which covers 32 stocks from the Philippines has experienced a volatile 2024 and is underperforming EMs quite significantly. EPHE's Q3 GDP was hampered by Tycoon Kristine, but the growth prospects for next year look more alluring. Manufacturing PMIs reflect healthy conditions in the industrial sector (the largest sector exposure), while the investment climate is also getting an uplift from favorable reforms.
EPHE: Staying Sidelined On The Philippines
Philippine large caps have been in decline for over a decade now. Fundamentals offer little evidence of a change in fortunes. Pending a meaningful shift in the investment case, I'd remain sidelined.
