World Areas and current P/E Ratios

If you want to invest in global markets, you can choose indices that track larger conglomerates.

Investing by market classification, you will probably have to choose between the US market, the All World index, and the Developed, Emerging and Frontier markets.

Global Market with the highest P/E Ratio:
 United States: 27.46
Global Market with the highest deviation vs 10Y Avg P/E:
 United States: +4.21 σ
GLOBAL MARKETS P/E RATIO
Grouped by Market Classification
Last Update: 20 Nov 2024
Swipe left to see all data
P/E Evaluation Historical P/E Average P/E Deviation vs Avg
Country Trend P/E▾ 5 Years 10 Years 20 Years 5 Years 10 Years 20 Years 5 Years 10 Years 20 Years
United States VTI 27.46
Expensive
Expensive
Expensive
 20.99 18.68 16.12
+3.62 σ
+4.21 σ
+5.03 σ
 20 Nov
All World VT 21.24
Expensive
Expensive
Expensive
 17.64 16.18 14.47
+2.51 σ
+3.63 σ
+4.41 σ
 20 Nov
Developed ex-US EFA 15.95
Fair
Overvalued
Expensive
 14.85 14.41 13.53
+0.84 σ
+1.69 σ
+2.16 σ
 20 Nov
Emerging Markets EEM 14.18
Fair
Fair
Overvalued
 13.62 13.25 12.74
+0.36 σ
+0.96 σ
+1.29 σ
 20 Nov
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).
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).
GLOBAL MARKETS - EVALUATION DIAGRAM
Long Term Trend and P/E Ratio

Continents

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.

Continent/Area with the highest P/E Ratio:
 United States: 27.46
Continent/Area with the highest deviation vs 10Y Avg P/E:
 United States: +4.21 σ
CONTINENTS P/E RATIO
Markets grouped geographically
Last Update: 20 Nov 2024
Swipe left to see all data
P/E Evaluation Historical P/E Average P/E Deviation vs Avg
Country Trend P/E▾ 5 Years 10 Years 20 Years 5 Years 10 Years 20 Years 5 Years 10 Years 20 Years
United States VTI 27.46
Expensive
Expensive
Expensive
 20.99 18.68 16.12
+3.62 σ
+4.21 σ
+5.03 σ
 20 Nov
All World VT 21.24
Expensive
Expensive
Expensive
 17.64 16.18 14.47
+2.51 σ
+3.63 σ
+4.41 σ
 20 Nov
Europe VGK 15.59
Overvalued
Expensive
Expensive
 13.59 13.61 12.43
+1.32 σ
+2.02 σ
+2.30 σ
 20 Nov
Asia ex-Japan AAXJ 15.38
Fair
Overvalued
Overvalued
 14.43 13.68 13.19
+0.65 σ
+1.63 σ
+1.89 σ
 20 Nov
Pacific VPL 13.64
Fair
Fair
Fair
 14.47 14.29 14.26
-0.61 σ
-0.71 σ
-0.55 σ
 20 Nov
Latin America FLLA 8.69
Fair
Undervalued
Undervalued
 9.65 11.62 11.51
-0.54 σ
-1.53 σ
-1.90 σ
 20 Nov
Africa AFK 7.30
Cheap
Cheap
Cheap
 11.45 13.12 12.43
-3.32 σ
-3.63 σ
-3.95 σ
 20 Nov
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).
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