Valuation of securities companies’ stocks after the market surpasses 1,500 points: Surprises with VIX, VND, SHS

The Vietnamese stock market is experiencing a significant growth phase, with the VN-Index surpassing 1,500 points, leading to strong increases in brokerage stocks since early July, e.g., VIX (+62%), SHS (+35%), SSI (+30%). This market dynamic has notably affected stock valuations. The average P/B ratio is around 2, and P/E is 22, which is not particularly attractive but not overly expensive considering growth potential. Larger stocks like SSI have a P/B of 2.3, while some like VIX and SHS have lower P/Bs (1.8 and 1.4, respectively). This indicates valuation differentiation, with higher-valued stocks enjoying competitive advantages, while lower-valued stocks face challenges in maintaining market share. Overall, despite the high valuations, potential growth is evident, especially with Vietnam’s prospects of being upgraded in international stock markets.