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: +3.75 σ
CONTINENTS P/E RATIO
Markets grouped geographically
Last Update: 16 May 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 | 27.26 |
Expensive
|
Expensive
|
Expensive
|
21.88 | 19.10 | 16.31 |
+2.90 σ
|
+3.53 σ
|
+4.41 σ
|
+3.10% | 16 May |
| VT | All World | 22.06 |
Expensive
|
Expensive
|
Expensive
|
18.20 | 16.46 | 14.58 |
+2.48 σ
|
+3.49 σ
|
+4.43 σ
|
+4.72% | 16 May | |
| VGK | Europe | 17.65 |
Expensive
|
Expensive
|
Expensive
|
13.98 | 13.69 | 12.46 |
+2.26 σ
|
+3.75 σ
|
+3.70 σ
|
+9.72% | 16 May | |
| AAXJ | Asia ex-Japan | 14.78 |
Fair
|
Fair
|
Overvalued
|
14.65 | 13.83 | 13.28 |
+0.10 σ
|
+0.89 σ
|
+1.25 σ
|
+5.98% | 16 May | |
| VPL | Pacific | 14.51 |
Fair
|
Fair
|
Fair
|
14.55 | 14.28 | 14.24 |
-0.03 σ
|
+0.25 σ
|
+0.23 σ
|
+4.22% | 16 May | |
| FLLA | Latin America | 10.38 |
Fair
|
Fair
|
Fair
|
9.22 | 11.35 | 11.50 |
+0.77 σ
|
-0.49 σ
|
-0.74 σ
|
+9.88% | 16 May | |
| AFK | Africa | 9.19 |
Undervalued
|
Cheap
|
Cheap
|
11.11 | 12.81 | 12.35 |
-1.47 σ
|
-2.10 σ
|
-2.30 σ
|
+10.33% | 16 May | |
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: 16 May 2025
