How Much are the US Market Leaders Worth
Asset prices have fallen tremendously since the recent stockmarket contagion. Deflation has set in across the globe. Let’s take a quick look at the global leader USA and how some top names are faring:
| Company | Value (US$bil) | PE (x) |
| Exxon Mobile (XOM) | 371 | 8.9x |
| Microsoft (MSFT) | 213 | 12.5x |
| GE | 189 | 9.4x |
| Proctor & Gamble (PG) | 178 | 16.1x |
| Johnson & Johnson (JNJ) | 172 | 14.0x |
| IBM | 120 | 11.0x |
| Google (GOOG) | 114 | 22.0x |
| Bank of America (BAC) | 109 | 20.9x |
| Wells Fargo (WFC) | 108 | 16.1x |
| Coca Cola (KO) | 106 | 17.9x |
| Apple (AAPL) | 81 | 17.9x |
| McDonalds (MCD) | 62 | 14.5x |
| Boeing Co (BA) | 32 | 7.7x |
| Nike (NKE) | 27 | 15.7x |
| eBAY | 19 | 10.3x |
| Yahoo (YHOO) | 17 | 16.8x |
Hmmm… it still looks quite expensive compared to our Malaysian market which is probably well below 10x PE for our household names.
OK granted that the above names are global players with global revenue base. And also Warren Buffett’s recent remarks that he’s piling back into US equities.
So it doesn’t take a genius to figure out that we are comparatively cheap … and arguably with a better economic outlook compared to US and Europe. I believe we will see some serious wealth creation over the next 10 years for those who brave the stock market turmoil and drumbeat of bad news that is all over the place right now.
I would normally agree with you but comeon, we are talking about...