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Home > India Story > The biggest macro tool for doing a country analysis

The biggest macro tool for doing a country analysis
Market cap to GDP Ratio.
Country Market Cap in Billion $

Market Cap as a
percentage to GDP%

Hong Kong 862.352 525.36
South Korea 583.429 85.75
India 508.976 77.53
Taiwan 436.76 143.11
Singapore 236.172 221.09
Malaysia 124.181 104.96
Thailand 108.909 66.61
China (Mainland) 56.006 3.39
Indonesia 50.561 19.61
Philippines 35.352 41.67
                                                              Data as in January 2006.Business Standard



Key Observations:
  • The Market Cap to GDP Ratio for a country is the same as the market cap to sales ratio for Individual companies.
  • Service economies have a higher market cap to GDP Ratio compared to manufacturing economies. Alos note that stocks in the services sector which are much more richly valued compared to their manufacturing counterparts.
  • Other passive factors that affect the market cap to GDP ratio are the RoE, earnings growth, macro economic policy framework, corporate governance practices etc

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