The increase in equity valuations haven’t only been seen in Thailand, all of SE Asia has been experiencing the same phenomenm, and small cap’s in Thailand (which I love) have generally been going through roof, the majority of them pricing in growth for the next 5-10 years (who say’s thai retail investors aren’t forward looking?!). Bloomberg had an article out detailing the performance and issues of this around the region

“It’s very hard now to find hidden jewels among small-cap companies’ shares as their prices have gone up substantially,” Adithep Vanabriksha, the Bangkok-based chief investment officer at Aberdeen Asset Management, said by phone on Sept. 17. “Many of them have valuations that are beyond their fundamentals.” His Aberdeen Small Cap Fund has gained an average 27 percent annually in the past five years, the best performer among 207 equity funds domiciled in Thailand, data compiled by Bloomberg show.

Source: Bloomberg