Current P/E of STI – 6.84x
Current P/B of STI – 1.34x
Mean P/E of STI – 16.3x
Mean P/B of STI – 1.73x
P/B of STI to be in “crisis range” – 0.98x (or -2SD)
P/B range of 0.7-1.2x in past crises
When STI is declining, it’s better to look at P/B than P/E as the earnings will usually drop if the crisis lasts long. This phenomenon will cause an inflated P/E as the denominator becomes smaller.
SudhanP.com 
This is great information.
Do you have the figures for KLCI? Appreciate if you could share that too.
Thanks
Hi,
Thanks for visiting my blog. Sorry I don’t have the figures for KLCI. But u can try Bloomberg website for P/E, P/B and dividend yield of almost all markets around the world. Once in the site, you need to click on “Professional” around the top and create a free account in order to view the market details.
More info can be found at https://financiallyfreenow.wordpress.com/2010/09/06/etfs-investment/
Let me know if u need any further help navigating the site to get the info u require. Cheers!
Hi FFN,
If I would like to check back on the P/E, P/B values of KLCI a year ago, how do I get it from the site?
Thanks, u have been very helpful to your readers.
Sorry I’m unsure about the past valuations. Maybe you can google it or look at analyst reports covering the Malaysia market.
Current P/E of STI – 9x now, gone up from the time of your post in Jan 2012. But P/B is 1.26, down from 1.34. Is this the scenario you described about P/E rising as Earnings drop?
Yes exactly!