Listed companies 68% are undervalued, fueling growing dissatisfaction among retail investors
Of listed companies, 68% had a PBR below 1times. 1,300The data showed that companies were in the undervalued range, while ETF funds continued to flow toward large-cap stocks. Retail investors have voiced concerns about the gap between their account returns and the index.
Listed companies 68% had a PBR below 1times. This means that many companies are trading at prices below their book value.
The survey found that 1,300 companies were in the PBR-below- 1times range. Many small- and mid-cap stocks fell into this category.
Funds flowing into ETFs are concentrated in large-cap stocks. As a result, the concentration in stocks with the highest market capitalizations has continued.
Despite favorable news for the semiconductor sector, the polarization among individual stocks has intensified. Investment demand appears to be concentrated in certain sectors and stocks.
Market participants pointed out that proactive shareholder-return policies are needed to curb a trading culture centered on leveraged investing and short-term trading. Return methods such as dividends and share buybacks and cancellations were discussed.
Some individual investors have expressed dissatisfaction, saying that the gains and losses shown in their accounts have not improved despite the rise in the index. With many undervalued stocks, selecting individual stocks has become more important.
These statistics simultaneously show fund flows centered on large-cap stocks and the undervaluation of small- and mid-cap stocks. Investors need to examine valuation and fund flows together.
Sources: 매일경제 증권
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