Global Market P/E Ratios: Compare Stock Market Valuations

Global Market P/E Ratios

A comparative overview of major equity indices across the globe using historic and forward looking Price-to-Earnings (P/E) ratios and related metrics.

Global Market P/E Valuation Map

Explore global stock market valuations based on P/E and other valuation metrics with our interactive map. Markets are classified as Highly Overvalued, Overvalued, Fairly Valued, Undervalued, and Highly Undervalued.

Market Valuations: Global P/E Ratios Overview

Country	Index	Category	Valuation Score
Philippines	PSEi Index	Highly Undervalued	86	10.5	12.5	0.8	-	-	18.2	-
Brazil	Bovespa Index (Ibovespa)	Highly Undervalued	85	9.3	13.4	0.3	0.2	0.8	12.1	-
Malaysia	FTSE Bursa Malaysia KLCI Index	Highly Undervalued	85	14.7	15.5	1.5	-	-	16.8	4.27%
Mexico	S&P/BMV IPC Index	Highly Undervalued	82	15.0	17.1	0.6	-	-	19.9	-
United Kingdom	FTSE 100 Index	Highly Undervalued	80	13.8	19.2	0.2	5.5	1.0	17.0	3.50%
Japan	NIKKEI 225 Index	Undervalued	78	17.5	26.0	0.7	1.5	0.9	19.4	2.36%
France	CAC 40 Index	Undervalued	78	16.9	20.2	0.5	1.4	0.9	17.4	2.60%
South Korea	KOSPI Index	Undervalued	78	12.2	16.3	0.5	0.2	0.7	12.2	2.29%
Indonesia	Jakarta Stock Exchange Composite Index	Undervalued	77	16.3	21.3	1.6	0.3	0.7	17.1	5.71%
South Africa	FTSE/JSE Africa All Shares Index	Undervalued	76	15.5	19.2	0.6	0.2	0.6	15.2	3.12%
Netherlands	AEX Index	Undervalued	75	15.3	21.8	0.2	-0.9	1.2	17.3	2.65%
Germany	DAX 40 Index	Fairly Valued	74	19.7	24.1	1.0	0.8	0.8	16.1	2.46%
Saudi Arabia	Tadawul Index	Fairly Valued	73	16.3	19.9	0.9	-	-	17.2	-
Poland	WIG Index	Fairly Valued	72	13.9	15.5	0.5	-	-	13.2	-
Canada	S&P/TSX Composite Index	Fairly Valued	70	20.4	24.1	1.4	1.2	0.9	18.1	2.66%
Taiwan	TWSE Index	Fairly Valued	70	19.8	26.1	1.3	1.0	0.8	17.2	2.55%
Thailand	SET Index	Fairly Valued	69	15.1	13.7	2.5	-	-	15.5	4.44%
India	NIFTY 50 Index	Fairly Valued	68	21.6	33.3	0.8	7.8	1.0	21.0	1.15%
Switzerland	SMI Index	Fairly Valued	68	18.1	21.7	2.5	-	-	20.4	-
Spain	IBEX 35 Index	Fairly Valued	67	12.5	21.0	-0.1	2.1	0.9	14.2	3.87%
China	SSE Composite Index	Fairly Valued	66	16.7	17.2	6.9	1.3	0.9	16.4	3.06%
Australia	S&P/ASX 200 Index	Fairly Valued	66	21.4	22.0	1.1	-8.1	1.0	17.2	3.34%
Singapore	STI Index	Overvalued	65	15.4	16.5	1.5	-	-	13.5	5.10%
Italy	FTSE MIB Index	Overvalued	64	12.5	20.5	0.2	-3.2	1.0	13.8	4.16%
United States	S&P 500 Index	Overvalued	62	24.8	33.7	1.6	1.9	0.9	18.8	1.32%
Turkey	BIST 100 Index	Highly Overvalued	57	14.6	8.4	0.3	-	-	9.8	-
Sweden	OMX Stockholm 30 Index	Highly Overvalued	55	17.9	18.7	2.2	-	-	15.9	2.97%
Hong Kong	Hang Seng Index	Highly Overvalued	44	11.9	10.6	-11.3	-0.8	1.2	11.5	3.51%
Europe	STOXX Europe 600 Index	Undervalued	76	18.7	21.0	0.7	0.7	0.8	17.6	-
Emerging Markets	MSCI Emerging Markets Index	Fairly Valued	71	15.7	14.7	2.4	0.8	0.8	13.9	-
Global Equity Markets	MSCI All Country World (ACWI) Index	Overvalued	64	22.5	26.5	2.1	1.2	0.9	17.8	-
Developed World	MSCI World Index	Overvalued	64	24.1	29.2	2.1	1.3	0.8	18.8	-

Last Updated			31-Aug-25	31-Aug-25	31-Aug-25	31-Aug-25	30-Jun-25	30-Jun-25	31-Aug-25	31-May-25

Disclaimer: The data is for informational purposes only and should not be considered investment advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information.

Scoring Components

The valuation score for each country/index is calculated using five major parameters:

PE Ratio
CAPE Ratio
Forward PE Ratio
5-year historical PEG Ratio
Forward PEG Ratio

The Valuation Score is calculated as a weighted average of these parameters:

A score higher than 80 indicates a Highly Undervalued index.
A score between 75 to 80 indicates that the index is undervalued.
A score between 65-75 is categorised as Fairly Valued, it usually is the largest cohort and includes the maximum number of countries/indices.
Similarly, a score within the range of 60 to 65 is considered overvalued.
A score lower than 60 is considered Highly Overvalued.

While the PE Ratio captures the current market position, the CAPE Ratio and the 5-year historical PEG Ratio capture the index performance from a historical or medium-term lens. Similarly, Forward PE and Forward PEG Ratios are based on future expectations about the index earnings per share.

Next, let’s break down and analyse the scoring methodology for each of the constituents of the index:

PE Ratio

The PE Ratio score is calculated using the percentile rank, which allows users to evaluate how expensive or cheap an index is relative to its own PE ratio over the last 25 years.

The PE ratio for an index in a given month is considered along with its previous monthly PE values since January 2001.
If the PE Ratio of the index for the current month is higher than the 90th percentile of its 25-year PE values, it indicates that the index is highly overvalued. Similarly, a PE value falling in the lowest 10th percentile indicates that the index is highly undervalued. The score is calculated adequately.

CAPE Ratio

CAPE ratio compares the price of an index to its 10-year average inflation-adjusted earnings, smoothing cyclical fluctuations. The scores are assigned based on deviation from PE ratios, as it provides a referential context.

A CAPE value near the current PE earns a higher score, suggesting undervaluation.
A CAPE significantly lower than the PE ratio indicates the possibility of a potential rebound, but may also indicate systemic problems and geopolitical risks and is therefore penalised.
Similarly, a high CAPE ratio is penalised due to the high risk of mean reversion and overheated earnings risk signalling higher valuations.

Forward PE Ratio

Forward PE is also scored relative to the current PE levels. It is a reflection of overall future optimism about the earnings from the index.

A lower value indicates better future earnings yield and results in higher scores.
A high Forward PE leads to scoring penalties due to valuation risk or pessimistic outlook.
An extremely low Forward PE value indicates an over optimistic outlook, or also the factor that the markets might already be pricing political instability or currency risks.

5-year historical PEG Ratio

Historical PEG Ratio scores are calculated based on 5-year annualised growth in earnings per share for an index. The scores are calculated to reward growth at reasonable price levels. Ratios around 1-1.8 are categorised as Fairly Valued, receiving a neutral score, whereas values below 1 indicate that the index is undervalued and receive higher scores (ratio between 0.5–1 gets the highest score). Extremely high or negative PEGs (due to declining earnings) are penalised. Scores are calibrated using a banded scale to avoid over-rewarding unsustainable growth or deeply cyclical downturns.

Forward PEG Ratio

Forward PEG uses 1-year earnings growth forecasts. Scores favour ratios between 0.5-1, indicating healthy earnings at modest valuations. Forward PEGs above 1.8 and negative PEGs are penalised due to implied risk or volatility. It offers a dynamic, sentiment-sensitive valuation-growth composite signal.

Overall Scoring

The consolidated overall score is calculated as the weighted average of each of the five components. If 1-year forward earnings estimates are unavailable, the score is recalculated using a weighted average of the remaining three available parameters. The weights are subjective and reflect the balance between historical parameters and future forward-looking estimates.