The price-to-earnings (PE) ratio of the entire local bourse at the end of last month fell to 21.23 from the 23.58 recorded at the end of February, the Taiwan Stock Exchange said on Thursday.
The PE ratio, which is calculated by comparing share prices to listed companies’ earnings, refers to the valuation of a stock market. A lower PE ratio means a cheaper market, which can attract bargain hunters.
Excluding the financial and insurance sectors, the PE ratio of the local main board stood at 22.94 as of the end of last month, while excluding the electronics sector, the PE level was 21.26, the exchange said.
The utility sector scored the highest PE ratio at 147.94 among the about 30 sectors, while the construction and building materials sector recorded the lowest PE ratio at 11.22, the exchange said.
Meanwhile, as of the end of last month, the dividend yield of the main board fell to 3.73 percent from the 4.01 percent recorded at the end of February, while the price-to-book value ratio slipped to 1.66 from 1.69.