Guess Whose Market Is A) Crushing Everyone Else's B) Cheap As Heck C) A Great Play On High Oil

We've touched on this a few times, but Citigroup's Andrew Howell is back banging the drum on the dirt-cheap Russian stock market.

You might not have noticed, but Russian stocks have been spanking all of the emerging markets over the past several months.

Image: Citi

Of course, the country's oil exposure has a lot to do with it:

Image: Citi

And despite the great returns, it's still cheap:

Energy stocks represent nearly 60% of MSCI Russia's market cap, versus just 15% in EM overall. To make Russia's PE more comparable to EM, we have created a new Russia "sector neutral" PE that assumes that Russia's sector weights are the same as in the EM index. Given that the energy sector PEs are so much lower than in other sectors, this increases Russia's overall multiple from 6.9x to 8.7x. Not as cheap as it was, but still a considerable discount to EM's PE at 10.6x.