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:
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
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Historical P/E Average
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P/E Deviation vs Avg
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Trend Margin |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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
