http://www.bespokeinvest.com/thinkbig/2011/3/4/country-peg-ratios.html
Sri Lanka is probably too small to merit mention in this report. However, as an academic exercise, I did the math for our country!
The trailing PE Ratio of the Colombo Stock Exchange as on 22nd Jun 2011 is 15.83
{Source: Lanka Securities (Pvt) Limited}
GDP growth for Sri Lanka during 2011 is forecast by the Central Bank of Sri Lanka at 8.5%.
Based on the above, Sri Lanka has a PEG Ratio of 1.86.
(i.e., Current PE divided by Est. 2011 GDP Growth)
Going by this measure of attractiveness, Sri Lanka's stock market would be placed at No. 1 on Bespoke's list, just ahead of China and India... Surely, this must be an attractive investment destination for long term investors...? Will we see a repeat of July to September 2010, when the ASI increased by over 50%? I sure hope so!