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: +3.11 σ
CONTINENTS P/E RATIO
Markets grouped geographically
Last Update: 25 April 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 | 25.21 |
Overvalued
|
Expensive
|
Expensive
|
21.73 | 19.03 | 16.28 |
+1.87 σ
|
+2.73 σ
|
+3.66 σ
|
-4.44% | 25 Apr |
| VT | All World | 20.66 |
Overvalued
|
Expensive
|
Expensive
|
18.11 | 16.42 | 14.56 |
+1.67 σ
|
+2.71 σ
|
+3.67 σ
|
-1.61% | 25 Apr | |
| VGK | Europe | 16.96 |
Overvalued
|
Expensive
|
Expensive
|
13.94 | 13.69 | 12.45 |
+1.90 σ
|
+3.11 σ
|
+3.25 σ
|
+6.10% | 25 Apr | |
| AAXJ | Asia ex-Japan | 15.31 |
Fair
|
Overvalued
|
Overvalued
|
14.58 | 13.81 | 13.26 |
+0.50 σ
|
+1.42 σ
|
+1.72 σ
|
-1.10% | 25 Apr | |
| VPL | Pacific | 14.02 |
Fair
|
Fair
|
Fair
|
14.52 | 14.30 | 14.25 |
-0.37 σ
|
-0.31 σ
|
-0.20 σ
|
+0.79% | 25 Apr | |
| FLLA | Latin America | 10.55 |
Fair
|
Fair
|
Fair
|
9.24 | 11.39 | 11.49 |
+0.86 σ
|
-0.42 σ
|
-0.62 σ
|
+6.58% | 25 Apr | |
| AFK | Africa | 9.36 |
Undervalued
|
Cheap
|
Cheap
|
11.17 | 12.86 | 12.36 |
-1.40 σ
|
-2.05 σ
|
-2.20 σ
|
+7.65% | 25 Apr | |
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).
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: 25 April 2025
