Equity investors value the future earnings of the main Asian airlines higher than, or on a par with, those of the European majors. This is not surprising given the booming emerging Asian economies and moderate economic growth of the Euro-zone countries.

Aeroflot’s future earnings are valued the lowest among global peers, on a par with KLM and Thai Airlines. The fact that Aeroflot’s future earnings are presently valued 56% below the GEM average underscores the attractiveness of the stock and our Buy take on it.