Has the Turkish Market valuation changed over the past few years?

Investors are pessimistic on the market, indicating that they anticipate earnings will not grow as fast as they have historically. The market is trading at a PE ratio of 9.6x which is lower than its 3-year average PE of 14.2x. This is at odds with analyst estimates, who expect earnings to grow in the future.

Which sectors have driven the changes within the Turkish Market?

Investors are most optimistic about the Telecom sector even though it's trading below its 3-year average PE ratio of 33.9x. This is likely because analysts are expecting annual earnings growth of 26%, which is higher than its past year's earnings growth of 17% per year. Investors are most pessimistic about the Real Estate sector, which is trading below its 3-year average of 10.6x.

Turkish (BIST) Market Analysis & Valuation

Date	Market Cap	Revenue	Earnings	PE
Wed, 25 May 2022	₺3.0t	₺3.0t	₺349.9b	9.6x
Fri, 22 Apr 2022	₺2.8t	₺2.5t	₺283.3b	12x
Sun, 20 Mar 2022	₺2.3t	₺2.5t	₺281.2b	10.8x
Tue, 15 Feb 2022	₺2.5t	₺2.2t	₺239.1b	13.7x
Thu, 13 Jan 2022	₺2.6t	₺2.1t	₺213.3b	15.2x
Sat, 11 Dec 2021	₺2.3t	₺2.1t	₺213.6b	16.1x
Mon, 08 Nov 2021	₺1.8t	₺2.0t	₺204.8b	14.6x
Wed, 06 Oct 2021	₺1.6t	₺1.8t	₺171.5b	14.9x
Fri, 03 Sep 2021	₺1.7t	₺1.8t	₺171.2b	15.4x
Sun, 01 Aug 2021	₺1.6t	₺1.8t	₺170.7b	14.8x
Wed, 05 May 2021	₺1.7t	₺1.6t	₺141.2b	17.8x
Sat, 06 Feb 2021	₺1.8t	₺1.5t	₺112.2b	23.1x
Tue, 10 Nov 2020	₺1.4t	₺1.4t	₺97.7b	18.7x
Mon, 03 Aug 2020	₺1.4t	₺1.4t	₺96.2b	17.6x
Thu, 07 May 2020	₺1.0t	₺1.5t	₺98.2b	12.8x
Sun, 09 Feb 2020	₺1.1t	₺1.4t	₺97.4b	13.3x
Sat, 02 Nov 2019	₺839.1b	₺1.3t	₺102.3b	8.2x
Tue, 06 Aug 2019	₺768.4b	₺1.3t	₺92.9b	7.7x


TR Market	0.066%
Financials	1.67%
Materials	1.64%
Healthcare	0.44%
Industrials	0.33%
Real Estate	-0.076%
Utilities	-0.57%
Consumer Discretionary	-0.60%
Telecom	-1.33%
Energy	-3.50%
Tech	-3.63%
Consumer Staples	-3.86%

Company	Last Price	7D	1Y	Valuation	Sector
ALMAD Altinyag Madencilik ve Enerji Yatirimlari Sanayi ve Ticaret	₺2.65	6.0% +₺4.1b	23.3%	PS812.9x	Consumer Staples
HEKTS Hektas Ticaret T.A.S	₺29.80	13.7% +₺3.1b	224.3%	PS55.2x	Materials
ASELS Aselsan Elektronik Sanayi ve Ticaret Anonim Sirketi	₺23.06	3.7% +₺1.9b	53.3%	PS6.9x	Industrials
ASUZU Anadolu Isuzu Otomotiv Sanayi ve Ticaret	₺113.90	23.9% +₺1.8b	507.1%	PS31x	Industrials
PRKAB Türk Prysmian Kablo ve Sistemleri Anonim Sirketi	₺37.00	16.7% +₺1.1b	197.0%	PS216.9x	Industrials

May 20

Banco Bilbao Vizcaya Argentaria, S.A. (BME:BBVA) completed the acquisition of additional 36.12% stake in Turkiye Garanti Bankasi A.S. (IBSE:GARAN) for TRY 22.8 billion.

Banco Bilbao Vizcaya Argentaria, S.A. (BME:BBVA) made an offer to acquire remaining 50.15% stake in Turkiye Garanti Bankasi A.S. (IBSE:GARAN) for TRY 31.6 billion on November 15, 2021. Banco Bilbao Vizcaya Argentaria will acquire 2.11 billion shares of Turkiye Garanti Bankasi at TRY 12.2 per share in cash. BBVA reserves the right to reduce or otherwise modify the bid price by an amount equal to the gross amount of the distribution per share, if Turkiye Garanti Bankasi declares or distributes dividends, reserves or any other kind of distribution to its shareholders at any time from today until the day of completion of the takeover bid. Prior to the transaction, Banco Bilbao Vizcaya Argentaria, S.A. owns 2.09 billion shares amounting to 49.85% stake in Turkiye Garanti Bankasi A.S. Banco Bilbao Vizcaya Argentaria, S.A. will pay the consideration with its current shareholders’ funds. As of April 25, 2022, the Board of Directors of BBVA decided to increase the voluntary takeover bid price offered in cash for each share of the Company from the initially announced price TRY 12.2 to TRY 15. The maximum aggregate amount of consideration payable by BBVA is TRY 31,595 million. As of May 17, 2022, BBVA exceeds 83% of Garanti. Banco Bilbao Vizcaya Argentaria may terminate the bid anytime before the commencement of the voluntary takeover bid period. Should this be the case, the cancellation of the Bid would be specifically disclosed to the Capital Markets Board of Turkey (CMB) and to the market. Since the voluntary takeover bid is addressed to all of Garanti’s shareholders, pursuant to article 14 (1) (a) of the Communiqué, if and when as a result of the voluntary takeover bid, BBVA’s shareholding in Garanti exceeds 50%, BBVA will not be obliged to launch a subsequent mandatory takeover bid. The voluntary takeover bid may result in BBVA’s acquisition of management control at Garanti Faktoring A.S. and Garanti Yatirim Ortakligi A.S., two fully consolidated subsidiaries of Turkiye Garanti Bankasi A.S. both of which are listed at Borsa Istanbul. If this is the case, taking into consideration that the bid is primarily aimed at increasing BBVA’s stake in Garanti and the fact that these two subsidiaries do not constitute a material portion of Garanti’s business, BBVA plans to apply to the CMB for an exemption from the mandatory tender offer requirements for such subsidiaries in accordance with article (18)(1)(c) of the Communiqué. The acquisition by BBVA of more than 50% of Garanti’s total share capital is subject to the prior approval of several authorities, both in Turkey and in other jurisdictions. The transaction is subject to regulatory approval and approval from Turkish competition authorities. BBVA has received confirmation from CMB that it will not formally approve the voluntary takeover bid application until CMB receives confirmation from BBVA that all relevant approvals required by BBVA have been duly obtained. Only after approval by the CMB of the voluntary takeover bid application will the voluntary takeover bid period begin. AS of March 31, 2022 regulatory board has approved the deal, BBVA has received authorization from the Turkish securities market supervisor (Capital Markets Board of Türkiye) to launch its voluntary takeover bid. The closing of the transaction is expected to take place in the first quarter of 2022. BBVA estimates an approximately 13.7% accretion to its 2022 earnings per share and an approximately 2.3% accretion to its tangible book value per share. Garanti Yatirim Menkul Kiymetler A.S acted as the authorized broker and dealer-manager for Banco Bilbao Vizcaya Argentaria. Banco Bilbao Vizcaya Argentaria, S.A. (BME:BBVA) completed the acquisition of additional 36.12% stake in Turkiye Garanti Bankasi A.S. (IBSE:GARAN) for TRY 22.8 billion on May 18, 2022. Following the acquisition, BBVA’s stake in Turkiye Garanti Bankasi increased to a total of 85.97%.

Turkish (BIST) Market Analysis & Valuation

Market Valuation and Performance

Sector Trends

Top Stock Gainers and Losers

Latest News

TSGYO

Investor sentiment improved over the past week

FROTO

Price target increased to ₺354

BIMAS

Now 21% undervalued

ASUZU

Investor sentiment improved over the past week

ULUSE

Less than half of directors are independent

GARAN

Banco Bilbao Vizcaya Argentaria, S.A. (BME:BBVA) completed the acquisition of additional 36.12% stake in Turkiye Garanti Bankasi A.S. (IBSE:GARAN) for TRY 22.8 billion.

HEKTS

Investor sentiment improved over the past week

PRKAB

Upcoming dividend of ₺0.053 per share

AEFES

Upcoming dividend of ₺1.85 per share

KONYA

First quarter 2022 earnings released: ₺2.97 loss per share (vs ₺0.47 loss in 1Q 2021)

HATEK

First quarter 2022 earnings released: EPS: ₺0.90 (vs ₺0.037 loss in 1Q 2021)

AVOD

First quarter 2022 earnings released: EPS: ₺0.041 (vs ₺0.065 loss in 1Q 2021)

ALMAD

First quarter 2022 earnings released: EPS: ₺0.18 (vs ₺0.047 in 1Q 2021)

SASA

First quarter 2022 earnings released

ASELS

Aselsan Elektronik Sanayi ve Ticaret Anonim Sirketi, Annual General Meeting, May 25, 2022