Valuations of Asian shares surged to an 11-year high in November, as COVID-19 vaccine hopes raised expectations for a faster recovery in regional economies.
The MSCI's broadest index of Asia-Pacific shares gained 10.2% last month, lifting its forward 12-month price-to-earnings ratio (P/E) to 16.7 at the end of November, the highest since October 2009.
Similarly, the MSCI's World index gained 12.2% last month and its forward P/E touched a three-month high of 19.67.
"Markets are indeed pricing in a high chance that the pandemic can be resolved, but Asia still looks cheap relative to alternate investments," said Dan Fineman, co-head of Asia Pacific Equity Strategy at Credit Suisse.
"The current P/E and price-to-book ratio (P/B) are cheaper than the levels coming out of the Global Financial Crisis (GFC)," Credit Suisse's Fineman said.
India, Australia and Indonesia shares were the most expensive in the region, with P/E ratios of 21.7, 18.3 and 18.2, respectively, data showed.
On the other hand, Chinese, Hong Kong and South Korean stocks were the cheapest in the regions with P/E ratios of 11.53, 12.38 and 13.1, respectively.
Hopes for a global vaccine-rollout have increased as Britain became the first western country to approve Pfizer Inc's COVID-19 vaccine this week and said it would start immunization early next week.