Financial sector stocks in our stock market are divided into three sub-groups based on their business characteristics: banks (BANK), which are well-known institutions, as well as the insurance and life insurance group, and the capital and securities group, which many investors favor for their high dividend yields.

             Timing for investment in this financial sector group comes after Thai investors have thoroughly studied the fundamentals of the stocks. The P/E ratio is another financial metric that reflects the valuation of a stock, allowing comparisons over different time periods in the past and present, as well as comparisons with other companies in the same industry.

             TerraBKK Research summarizes the P/E ratios of financial sector stocks, totaling over 58 stocks across 3 business groups. Let's see how the stocks you currently hold in your portfolio compare to the industry average.

             Banking Sector includes 11 banks with an industry average P/E ratio of 15.8 times. The most expensive bank in the group is CIMBT - CIMB Thai Bank, while the cheapest bank currently is TCAP - Thanachart Capital.

             Insurance and Life Insurance Sector comprises 15 companies with an industry average P/E ratio of 14.3 times. Many investors choose to invest in insurance stocks for their high dividend yields, such as THRE – Thai Reinsurance (Dividend Yield 8.47%) and THREL – Thai Life Reinsurance (Dividend Yield 6.45%). The most expensive stock in this group is CHARAN - Charan Insurance.

             Capital and Securities Sector includes 32 companies with an industry average P/E ratio of 17.5 times. Several stocks in this sector offer quite good dividend yields, such as MFC – MFC Asset Management (Dividend Yield 9.4%) and KGI - KGI Securities (Dividend Yield 7.96%). The most expensive stock in this group is TNITY - Trinity Watthanakorn, while the cheapest is FSS - Finansa Securities.



             Finally, if anyone wonders why some stocks do not have a P/E ratio, TerraBKK provides the answer: it is because those stocks have not generated net profits in the last 12 months or are currently at a loss. If calculated, the value would be negative, and the Stock Exchange of Thailand states that it cannot be determined. ---TerraBKK

Article by: TerraBKK Investment Tips
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