Chart of the Day: Here’s proof that Singapore's stock market is a bargain hunter’s paradise

It’s way cheaper compared to global benchmarks.

Singapore’s equity market is teeming with undervalued high-growth stocks, according to a report by Morgan Stanley.

Morgan Stanley said that as a developed market, Singapore’s valuation and performance should be compared with the MSCI World Index, which includes largeand mid-cap companies across 23 developed markets globally.

The MSCI World Index’s price-to-book (P/B) valuation is around 2% above its long-term average and ~20% below its long-term peak multiple.

On the other hand, Singapore’s P/B valuation is a staggering 32% below its long-term average and a whopping 55% below its long-term peak.

Apart from these, Morgan Stanley highlighted that MSCI Singapore’s P/B discount relative to MSCI World is the highest during the past 10 years.

“Singapore equities seem to trade at attractive valuations not only with respect to their history but also relative to other equity markets. On an absolute and relative basis the equity market is trading close to its cyclical troughs,” said Morgan Stanley.