Stock picks from Turkiye which is one of the cheapest European market
u/erlikosauruss ·
Reddit — r/ValueInvesting
· February 22, 2026 at 08:46
· ⬆ 22 pts
· 💬 54 comments
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AI Summary
Summary
The post argues that the Turkish stock market is significantly undervalued relative to its strong GDP growth over the past two decades. The author believes the market has been unfairly punished for geopolitical and domestic instability, creating a value opportunity.
The author presents three specific stock picks (a bank, an auto distributor, and a REIT) based on low valuation multiples (P/E, P/B), high dividend yields, and strong market positions, suggesting they are prime value investments.
Quality Assessment: This is speculative analysis. While it points to some potentially attractive valuation metrics, it lacks depth, particularly regarding the severe macroeconomic and political risks inherent in the Turkish market. The top comments effectively highlight major flaws, such as ignoring currency risk, political interference in monetary policy, and using inappropriate valuation metrics for banks.
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Turkiye, the favourite market of Mohnish Pabrai, is Europe’s fastest-growing GDP in the last two decades.
A massive 6x jump in GDP (from 240 bn $ in 2002 to 1,57 trillion $ in 2025), yet its market index made only 3x (from roughly 100$ to 300$ within the same period). P/E ratio of Turkiye is slightly over 10 today.
Turkish economy delivered this performance while wars raged in its southern neighbours Syria and Iraq, its northern neighbours Ukraine and Russia, and eastern neighbours Armenia and Azerbaijan. Domestic crises such as currency depreciation, earthquake, attempt of coup d'etat also didn't help the Turkish stock market.
Given all the internal and external shocks, Turkish economy proved its adaptability and resilience.Turkiye now stands to benefit from gradually improving relations with both the EU and the United States, and also increasing stability in its southern neighbours. A possible peace deal between Russia and Ukraine will also give a boost.
After this little geoeconomic assessment why we should invest in Turkiye, here are my top value picks:
1- Isbank (ISCTR)
\-The oldest private bank with a leading market share.
\-Ridicolous P/E below 6, P/B below 1
\-The recent credit rating of Fitch for the long term credibility is AA-
\-Owner of a broad portfolio of strategic subsidiaries, including Sisecam, Europe’s largest glass producer
2- Dogus Otomotiv (DOAS)
\-Türkiye's second largest car dealer having the distributor licence of Volkswagen group
\-P/E ratio at 8
\-Dividend yield over %10
3- Torunlar GYO (TRGYO)
\-A REIT company owning some very prestigious business malls, hotels and office towers which generate a stable income every year
\-Market cap is half of the book value
\-Cash reserve is equal to half of the market cap
\-Expected dividend is %8 this year
Isbank is the oldest private bank in Turkiye with a leading market share, a strong credit rating (AA- from Fitch), and owns a strategic portfolio of subsidiaries. It trades at a P/E below 6 and a P/B below 1. These "ridiculous" valuation metrics suggest the market is deeply undervaluing a high-quality, systemically important financial institution, offering a significant margin of safety and upside potential. Isbank is a compelling value investment due to its market leadership, strong fundamentals, and extremely low valuation multiples, which do not reflect its intrinsic worth or strategic holdings. The author's analysis is superficial; P/E is a poor metric for valuing banks. Major risks include currency depreciation (the Lira), political interference with the central bank and interest rate policy (as highlighted by u/SuperSultan), and systemic economic instability. TICKER - DIRECTION
Dogus Otomotiv is Turkiye's second-largest car dealer, holding the distribution license for the Volkswagen group. It has a P/E ratio of 8 and a dividend yield over 10%. The combination of a single-digit P/E ratio and a double-digit dividend yield indicates the stock is exceptionally cheap and offers a substantial return to shareholders through dividends alone. DOAS represents a high-yield value opportunity, allowing investors to buy into a major automotive distributor at a low price and receive a significant cash return while waiting for capital appreciation. The auto industry is highly cyclical and sensitive to economic downturns and consumer credit availability. High inflation and currency volatility could severely impact consumer purchasing power and the company's import costs. TICKER - DIRECTION
Torunlar GYO is a REIT with a portfolio of prestigious, income-generating properties. Its market capitalization is half of its book value, its cash reserve equals half of its market cap, and it has an expected dividend yield of 8%. The massive discount to book value, combined with a strong cash position and a high dividend yield, suggests the company's assets are severely mispriced by the market, offering a classic "deep value" opportunity. TRGYO is an asset-rich company trading at a deep discount. Investors can purchase its high-quality real estate portfolio for 50 cents on the dollar while collecting a substantial dividend. Book value for REITs can be misleading and may not reflect the true market or liquidation value of the properties, especially in a volatile economy. Commercial real estate is sensitive to economic health, and a downturn could impact occupancy rates and rental income.
This Reddit post, published February 22, 2026,
features u/erlikosauruss
discussing ISCTR, DOAS, TRGYO.
3 trade ideas extracted by AI with direction and confidence scoring.