An investor may prefer to invest in an entire continent or geographic area because it provides diversification and spread of risk.

Investing in a larger area, such as an entire continent, provides exposure to a broader range of markets and industries, reducing the impact of negative events in any one specific market.

Highest P/E Ratio:
 United States: 27.59
Highest deviation vs 10Y Avg P/E:
Europe: +3.14 σ
CONTINENTS P/E RATIO
Markets grouped geographically
Last Update: 05 November 2025
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P/E Evaluation
Historical P/E Average
P/E Deviation vs Avg
Trend Margin
Country P/E Ratio▾ 5 Years 10 Years 20 Years 5 Years 10 Years 20 Years 5 Years 10 Years 20 Years vs SMA-200 Time (ET)
VTI United States 27.59
Expensive
Expensive
Expensive
 22.26 19.59 16.54
+2.43 σ
+3.07 σ
+4.09 σ
 +10.71% 05 Nov
VT All World 22.32
Expensive
Expensive
Expensive
 18.41 16.78 14.75
+2.25 σ
+3.06 σ
+4.06 σ
 +10.47% 05 Nov
VGK Europe 17.50
Overvalued
Expensive
Expensive
 14.09 13.80 12.55
+1.97 σ
+3.14 σ
+3.31 σ
 +6.30% 05 Nov
AAXJ Asia ex-Japan 16.83
Overvalued
Expensive
Expensive
 14.57 14.00 13.38
+1.70 σ
+2.54 σ
+2.77 σ
 +16.15% 05 Nov
VPL Pacific 16.73
Overvalued
Expensive
Expensive
 14.40 14.30 14.26
+1.98 σ
+2.65 σ
+2.16 σ
 +13.54% 05 Nov
FLLA Latin America 11.27
Expensive
Fair
Fair
 8.99 11.16 11.55
+2.02 σ
+0.05 σ
-0.19 σ
 +14.69% 05 Nov
AFK Africa 6.44
Cheap
Cheap
Cheap
 10.65 12.50 12.29
-4.07 σ
-3.44 σ
-4.09 σ
 +18.68% 05 Nov
Methodology

The Average P/E (μ) and the Standard Deviation (σ) are calculated excluding 20% outliers (i.e. over a range of values excluding 10% of observations from the top and 10% from the bottom of the dataset). Additionally, P/E values greater than 70 or lower than 1 are logarithmically normalized to reduce distortions.

A P/E between (μ - σ) and (μ + σ) is considered "Fair", over a specific timeframe.
A P/E greater than (μ + σ) is defined "Overvalued", greater than (μ + 2σ) is defined "Expensive".
A P/E less than (μ - σ) is defined "Undervalued", less than (μ - 2σ) is defined "Cheap".

The Trend is considered positive if the ETF price is higher than the 200-day moving average (SMA).

CONTINENTS - EVALUATION DIAGRAM
Long Term Trend and P/E Ratio
Last Update: 05 November 2025