The daily KLCI updates I provide on this blog may not be too useful if one isn't aware of the historical value of the market PE.
More on historical KLCI PE info.
I'd so like to plot my own graph but I can't get my hands on KLCI PE 10 year data. Darn, I can't even get the past 1 year data! Doesn't seem to be published anywhere. Anyway, the chart provided by Public Mutual is quite accurate. Here is the latest available KLCI PE Multiple chart from Public Mutual.
Source: Public Mutual
On 18-Nov-2011, the PE ratio stated on the chart is 15.7x. A check with my own post on 18-Nov KLCI PE shows a multiple of 15.7986.
I've always been skeptical with mutual funds as they paint very rosy pictures of market conditions and investment returns. Reports and market data churnned out from mutual fund houses are likely to be sugar-coated and carefully selected to promote sales. I always check if the figures have been twisted to their benefit. Forward PE is one of them. I've heard enough of the market being extremely 'cheap' based to forward PE. Alright, back to the graph, the P/E on 2011 seem to aptly reflect the PE of the underlined date. Just forget about the P/E on 2012 earnings; now that is forward PE.
I will be making weekly posting on FTSE Bursa Malaysia KLCI Market P/E chart.
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