Saudi stocks among the cheapest globally, says BofAML

Equities listed on the Saudi Arabian stock exchange remain one of the cheapest in the Eastern Europe, Middle East and Africa (EEMEA) region, Bank of America Merrill Lynch (BofAML) noted in its latest report.

The report said Saudi stocks are trading below their long-run averages on forward enterprise value (EV)/ earnings before interest, taxes, depreciation, and amortization (EBITDA) and EV/Sales, while trading close to the average on forward P/E and P/B.

Also read: Foreign investments in Saudi stocks reach all-time high

The report said Saudi Arabia stock market’s 2018 performance was driven predominantly by strong positive earnings revisions pushing it to the highest level in years.

“Saudi's earnings growth is projected to match global emerging markets (GEM),” BofAML said, adding, “Saudi Arabia offers similar equity risk premium as UAE and Qatar.”

Write to Sunil Kumar Singh at sunil.kumar@argaamplus.com