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Tehran Stock Exchange P/E ratio falls by 21 percent

Iran Materials 29 August 2014 11:55 (UTC +04:00)

Baku, Azerbaijan, Aug.29

By Fatih Karimov - Trend:

Tehran Stock Exchange's (TSE) price-earnings ratio, also known as P/E ratio, has dropped 21 percent since the beginning of the current year.

The TSE's P/E ratio is currently about 5.6, down 21 percent from 7.6 in the beginning of the year, Iran's ISNA news agency reported on August 29.

In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E.
Tehran Stock Exchange's main index (TEPIX) rose 110 points on Aug. 23, reaching 74,000 points.

The Iranian fiscal year started on March 21.

Founded in 1967, the Tehran Stock Exchange has been one of the world's best performing stock markets in recent years and has ranked as the best bourse index in Europe, Africa and Middle East in 2010 in terms of performance of the main index.

The TSE's annual growth rate of main indices was also ranked as the second best among all members of the World Federation of Exchanges (WFE).

The WFE is the association of 52 regulated exchanges around the world which aims to develop and promote standards in markets.

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