Despite Known Adversities of Sanctions and Wartime Valuations, Russia’s MOEX Index is a Unique Opportunity for Risk-Takers

Jun 26, 2023
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According to Trading Economics global macro models and consensus forecast, the MOEX Russia Index is expected to trade at 2682.98 points by the end of this quarter. Looking forward, TE estimates it to trade at 2373.01 in 12 months span. Moscow Exchange reported Rub 278.63 billion (just around USD 3.32 billion) in market capitalization this June 2023, considering the latest stock price and the number of outstanding shares. Despite all the adversities of international sanction and diplomatic deterioration, MOEX looks trading fractions of its fair value, hinting at a potential 10X or even 50–100X multiples if things get eventually.better. The market index is trading at a P/E ratio of 3.5x which is significantly lower than its 3-year average P/E of 6.3x. The earnings for Russian listed companies have grown 35% CAGR over the last 3 years. Revenues for these companies have grown 14% CAGR per year.

Trading at the Moscow Stock Exchange on June 26 are carried out in normal fashion, despite on June 24 the mayor of Moscow Sergey Sobyanin has declared the day off. The press-service report says that the Central Bank assumes that Moscow credit and non-credit organizations, as well as organizations that provide professional services in the financial markets, ensure the smooth operation of the entire Russian financial system. Therefore, no matter if mayor of Moscow Sergey Sobyanin declared the 26th of June a day off, financial organizations must perform their daily functions.