Historical discount on Turkish stocks

While the BIST 100 index has recently been trying to hold on to $300 in dollar terms, the discount of Turkish stocks compared to emerging market stocks continues to trend at historical levels. Turkish stocks continue to trade at historically cheap levels compared to the average of emerging markets. According to Bloomberg’s analysis of price/earnings ratios on the MSCI Turkey and MSCI Emerging Markets indexes, Turkish stocks are 60 percent more discounted than emerging market stocks. As of February, the price/earnings ratio on the MSCI Turkey index was recorded as 4.93. In the same period, this ratio was 11.93 in the MSCI Emerging Markets index. When these two ratios were compared, it was seen that Turkish stocks were 60 percent cheaper than emerging market stocks. The discount of Turkish stocks to emerging market stocks had reached a record level of 73 percent in 2023. Turkish stocks had previously traded at the same price/earnings ratios as emerging market stocks in the 2012-2013 period.