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: 26.66
Highest deviation vs 10Y Avg P/E:
Europe: +3.49 σ
CONTINENTS P/E RATIO
Markets grouped geographically
Last Update: 08 August 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 26.66
Expensive
Expensive
Expensive
 22.05 19.32 16.42
+2.31 σ
+2.98 σ
+3.95 σ
 +7.53% 08 Aug
VT All World 21.79
Expensive
Expensive
Expensive
 18.31 16.59 14.66
+2.13 σ
+3.04 σ
+4.03 σ
 +8.72% 08 Aug
VGK Europe 17.60
Expensive
Expensive
Expensive
 14.00 13.73 12.51
+2.20 σ
+3.49 σ
+3.51 σ
 +9.50% 08 Aug
VPL Pacific 15.56
Fair
Overvalued
Overvalued
 14.44 14.24 14.24
+0.92 σ
+1.53 σ
+1.18 σ
 +12.96% 08 Aug
AAXJ Asia ex-Japan 15.46
Fair
Overvalued
Overvalued
 14.60 13.89 13.33
+0.64 σ
+1.44 σ
+1.76 σ
 +11.16% 08 Aug
FLLA Latin America 10.24
Fair
Fair
Fair
 9.07 11.23 11.52
+0.93 σ
-0.51 σ
-0.87 σ
 +9.47% 08 Aug
AFK Africa 10.07
Fair
Undervalued
Undervalued
 10.86 12.63 12.32
-0.67 σ
-1.46 σ
-1.59 σ
 +23.16% 08 Aug
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: 08 August 2025