Jason Chang: Stock market overheating should be judged by P/E ratio; Taiwan stocks are not overheated

Pegatron Chairman Jason Chang attended the National Taiwan Normal University graduation ceremony today. When asked about concerns regarding whether the Taiwan stock market is overheating, Chang stated that one should look at the price-to-earnings (P/E) ratio. Taiwan's economic growth in the first quarter was very high, mainly due to strong exports to the US. The total profit of all listed companies in Taiwan reached over NT$1.6 trillion in the first quarter, which is the foundation for the stock market's rise. Based on this, the full-year profit is estimated to be around NT$6 trillion to NT$6.5 trillion. Chang pointed out that the first quarter was not the hottest, and a full-year profit of NT$6.5 trillion is very possible. 'Basically, a P/E ratio of 25 is not overheating.' Chang also mentioned that while Hong Kong has less land than Taiwan, its stock market capitalization is still larger than Taiwan's. He noted that the willingness of important global stocks to trade in Taiwan proves that the maturity of Taiwan's finance and the order of its stock market operations have reached a world-class level.