“Russia’s MICEX Index looks cheap after falling dramatically this year and could be a good investment compared to holding shares of the technology giant Apple, Paul Gambles, managing partner at the financial advisory group MBMG Group, told CNBC.,” Matt Clinch reports for CNBC.
“‘You’ve got to look at valuations,’ he told CNBC Monday. ‘To me, at those sorts of prices, it’s starting to look like there’s a – speculative admittedly – high risk opportunity,'” Clinch reports. “‘There’s a play on Russia just because of the pricing. I’d rather own Russia than own Apple, frankly.'”
“The market capitalization of the MICEX currently stands at 20.40 trillion rubles or $350.14 billion, which compares to Apple’s figure of $655.57 billion,” Clinch reports. “The price-to-earnings ratio – an important metric used to gauge stock valuations by some analysts – is 17.38 for Apple, according to data from Reuters, and an average of 5.97 for the MICEX. A lower number is seen as a better investment by many equity analysts.”
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