Adding to the bull case for Spanish equities, as is the case across several of the Eurozone’s previously battered equity markets, are compelling valuations. EWP sports a P/E of 21.5 and a price-to-book ratio of 3.11, according to iShares data.
That sounds pricey, but using the Shiller cyclically adjusted P/E of around 10, Spanish stocks are cheap relative to other developed markets and their long-term averages.
EWP’s 12-month trailing yield of 3.9% is almost double that of the comparable Italy ETF and nearly 50 basis points higher than what is found on the iShares MSCI France ETF (NYSEArca: EWQ).
iShares MSCI Spain ETF
ETF Trends editorial team contributed to this post.