Valuation criteria for emerging market value banking stocks. P/B 0.5-1.5x with 30-40% discount, country risk adjustments, and country-specific considerations for China, India, and Poland banks.
Primary Method: P/B + Country Risk Adjustment + Asset Quality Deep Dive
| Metric | Target Range | EM Adjustment |
|---|---|---|
| P/B Ratio | 0.5-1.5x | 30-40% deeper discount vs developed (China: 0.6-1.0x typical) |
| P/E Ratio | 8-12x | Reflects higher business risk |
| Required ROE | >15% | Threshold higher than developed markets |
| Currency Risk Premium | +2-3% | Added to discount rate for analysis |
| Political/Regulatory Risk | Case-by-case | China: geopolitical; India: regulatory clarity; Poland: EU stability |
China Banks:
India Banks:
Poland Banks: