P/E ratio enhances attractiveness of UAE capital markets by end of July

P/E ratio enhances attractiveness of UAE capital markets by end of July

(WAM) — The UAE financial markets have maintained their competitive edge in the Gulf and Middle East region over the past period, as their average Price Earnings Ratio (P/E Ratio) stood at 12.5 by end of July against 13.6 in the same month last year, according to recent statistics released by the Abu Dhabi Securities Exchange and Dubai Financial Market.

The most popular metric of stock analysis, the P/E Ratio is the relationship between a company's stock price and earnings per share (EPS), with long-term investors commonly using the ratio and the dividend yield as asset allocation signals.

Thanks to the significant dividends announced by listed companies for their shareholders, UAE stocks are expected to lure more investors and facilitate more capital inflows to the market.

The contracting sector topped the list of