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Global Market P/E Ratios

Global Market P/E Ratios

A comparative overview of global equity markets using 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.

Categories

Highly Overvalued

An index or a country is considered Highly Overvalued if it has a score of 60 or below.

3 markets

Hong KongSwedenTurkey
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Overvalued

4 markets

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Fairly Valued

13 markets

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Undervalued

4 markets

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Highly Undervalued

4 markets

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Market Valuations: Global P/E Ratios Overview

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MalaysiaFTSE Bursa Malaysia KLCI IndexHighly Undervalued8714.114.91.5--16.84.27%
PhilippinesPSEi IndexHighly Undervalued8510.912.70.9--18.2-
BrazilBovespa Index (Ibovespa)Highly Undervalued8310.412.80.40.30.812.1-
MexicoS&P/BMV IPC IndexHighly Undervalued8215.016.80.6--20.0-
JapanNikkei 225 IndexUndervalued7916.925.20.71.60.919.42.36%
United KingdomFTSE 100 IndexUndervalued7813.619.20.54.01.017.03.50%
FranceCAC 40 IndexUndervalued7817.220.50.51.60.917.42.60%
South KoreaKOSPI IndexFairly Valued7514.116.60.60.40.712.12.29%
NetherlandsAEX IndexUndervalued7515.322.20.2-1.01.217.32.65%
South AfricaFTSE/JSE Africa All Shares IndexFairly Valued7417.018.80.70.30.615.23.12%
GermanyDAX 40 IndexFairly Valued7319.824.41.00.80.816.12.46%
CanadaS&P/TSX Composite IndexFairly Valued7219.423.11.41.20.918.12.66%
Saudi ArabiaTadawul IndexFairly Valued7216.820.40.9--17.3-
PolandWIG IndexFairly Valued7114.316.10.5--13.2-
TaiwanTWSE IndexFairly Valued7119.325.61.31.00.817.12.55%
IndonesiaJakarta Stock Exchange Composite IndexFairly Valued7116.920.52.10.40.717.15.71%
SwitzerlandSMI IndexFairly Valued7017.421.22.4--20.5-
ChinaSSE Composite IndexFairly Valued6915.416.06.41.30.916.33.06%
SpainIBEX 35 IndexFairly Valued6812.020.3-2.00.914.23.87%
ThailandSET IndexFairly Valued6815.113.72.9--15.54.44%
IndiaNIFTY 50 IndexFairly Valued6622.234.30.912.31.021.01.15%
ItalyFTSE MIB IndexOvervalued6411.720.00.225.51.013.84.16%
AustraliaS&P/ASX 200 IndexOvervalued6420.321.51.236.31.017.23.34%
SingaporeSTI IndexOvervalued6414.816.11.6--13.55.10%
United StatesS&P 500 IndexOvervalued6224.833.31.72.30.918.81.32%
Hong KongHang Seng IndexHighly Overvalued5911.810.5-8.0-0.81.211.53.51%
TurkeyBIST 100 IndexHighly Overvalued5714.08.10.3--9.8-
SwedenOMX Stockholm 30 IndexHighly Overvalued5517.618.52.1--15.82.97%
EuropeSTOXX Europe 600 IndexUndervalued7618.720.90.80.70.817.6-
Emerging MarketsMSCI Emerging Markets IndexFairly Valued7115.314.52.20.70.813.9-
Global Equity MarketsMSCI All Country World (ACWI) IndexOvervalued6422.126.02.01.30.917.7-
Developed WorldMSCI World IndexOvervalued6423.528.62.01.30.818.8-
Last Updated31-Jul-2531-Jul-2531-Jul-2531-Jul-2530-Jun-2530-Jun-2531-Jul-2531-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.

      References:

      • Market/ Index Data: Siblis Research
      • 1 Finance Research

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