World Areas and current P/E Ratios

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: 25.20
Highest deviation vs 10Y Avg P/E:
Europe: +2.95 σ
CONTINENTS P/E RATIO
Markets grouped geographically
Last Update: 02 July 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 25.20
Overvalued
Expensive
Expensive
21.99 19.24 16.38
+1.66 σ
+2.47 σ
+3.45 σ
+6.22% 02 Jul
VT All World 20.74
Overvalued
Expensive
Expensive
18.28 16.54 14.64
+1.53 σ
+2.50 σ
+3.50 σ
+7.80% 02 Jul
VGK Europe 16.92
Overvalued
Expensive
Expensive
14.00 13.71 12.49
+1.78 σ
+2.95 σ
+3.08 σ
+11.25% 02 Jul
AAXJ Asia ex-Japan 15.61
Fair
Overvalued
Overvalued
14.62 13.86 13.31
+0.71 σ
+1.62 σ
+1.91 σ
+9.94% 02 Jul
VPL Pacific 14.54
Fair
Fair
Fair
14.49 14.25 14.24
+0.04 σ
+0.32 σ
+0.26 σ
+9.60% 02 Jul
FLLA Latin America 10.61
Overvalued
Fair
Fair
9.12 11.27 11.51
+1.12 σ
-0.34 σ
-0.61 σ
+11.58% 02 Jul
AFK Africa 9.71
Undervalued
Undervalued
Undervalued
10.93 12.69 12.33
-1.00 σ
-1.70 σ
-1.87 σ
+19.85% 02 Jul
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: 02 July 2025