The Motley Fool Singapore
How Cheap Is the Singapore Stock Market Currently?
Are you looking to invest in Singapore shares to take advantage of the volatile market conditions? Then you have to look no further. Here, we will explore two ways to find out if the Singapore stock market is cheap right now. The first method is to compare the market’s current price-to-earnings (PE) ratio to the market’s long-term average PE ratio. The second approach involves looking at the number of net-net stocks in the stock market. With that, let’s dive right in. PE valuation method Since it is difficult to get the past daily PE ratios of the Straits Times Index, the PE ratios of SPDR STI ETF (SGX: ES3) can be used as a proxy. The SPDR STI ETF is an exchange-traded fund (ETF) that tracks the fundamentals of the Straits Times Index (SGX: ^STI). As of 16 August 2019,