Perpetual sees emerging-market valuation discounts bolstering case for value investing
- Emerging-market equity leaders trade at discounts of about 35% to 77% to developed-market peers, supporting the case for selective value investing.
- IMF forecasts put emerging and developing economies' growth at 3.9% in 2026, versus 1.8% for advanced economies.
- The growth gap is expected to widen in 2027, with emerging economies expanding 4.2%, versus 1.7% for advanced economies.
- Emerging-market stocks account for just 11.7% of the MSCI ACWI, despite their economies' growing contribution to global output.
- Lower analyst coverage creates mispricing opportunities; the analysis favors inexpensive companies with strong earnings, financial strength and reliable dividends.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Perpetual Limited published the original content used to generate this news brief on November 11, 2026, and is solely responsible for the information contained therein.