How do you determine the intrinsic value of an ETF? - Seedly
 

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Asked by Anonymous

Asked on 16 Feb 2019

How do you determine the intrinsic value of an ETF?

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Victor Chng
Victor Chng, Co-Founder at Fifth Person Pte Ltd
Level 6. Master
Updated on 07 Jun 2019

Hi,

I uses the Bloomberg app to guage the index valuation using PE ratio. In general, the average PE range for all index ETF is around 15x. If the index is trading below 10x then I deemed it as cheap. Few months ago, the Hang Seng index was trading below PE 10x which i think is cheap so I bought some Hang Seng ETF for my wife.

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Victor Chng
Victor Chng

19 Feb 2019

Hi Question Poster, I will usually buy index ETF if their PE ratio is below 10x
Kishor Bhagwat
Kishor Bhagwat

08 Mar 2019

I use the CAPE10 as one of the metrics for country/region ETF. But also look at political risk for the country...Russia is really cheap currently but I wouldnt touch it!