Any Way You Look At It Emerging Markets Are Cheap: Citi

Emerging markets have taken a beating the last few months. The valuation discount between emerging markets and developed markets is not only due to higher degree of cyclicality, but also due to various other factors, notes Citi in a recent research report. Markus Rosgen and Yue Hin Pong of Citi in their recent research report titled ‘GEMS Strategy’ point out EMEA generally has the cheapest valuations, but higher financial vulnerability than Asia as well as a better ROE and higher free cash flow margins. EM has higher cyclicals weighting The Citi analysts point out that the argument that an asset…