For investors who are still on the sidelines, low valuations of Iranian stocks may be tempting. The main index in Tehran trades at about 5.5 times earnings, according to Agah’s statement on its website. That compares with a multiple of 11.2 for the MSCI Frontier Markets Index, data compiled by Bloomberg show.
“We are keeping a close watch,” Rami Sidani, the head of frontier markets at Schroders Investment Management Ltd. said by e-mail from Dubai on April 9. “It’s definitely a market that could be very interesting for us. However, we need full clarity on the sanctions to move forward.”