World Areas and current P/E Ratios

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: 24.18
Highest deviation vs 10Y Avg P/E:
Europe: +2.79 σ
CONTINENTS P/E RATIO
Markets grouped geographically
Last Update: 03 April 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
VTI United States 24.18
Overvalued
Expensive
Expensive
21.73 19.03 16.28
+1.32 σ
+2.27 σ
+3.23 σ
-7.05% 03 Apr
VT All World 19.95
Overvalued
Expensive
Expensive
18.11 16.42 14.56
+1.20 σ
+2.25 σ
+3.24 σ
-4.68% 03 Apr
VGK Europe 16.62
Overvalued
Expensive
Expensive
13.94 13.69 12.45
+1.69 σ
+2.79 σ
+3.01 σ
+2.16% 03 Apr
AAXJ Asia ex-Japan 14.52
Fair
Fair
Overvalued
14.58 13.81 13.26
-0.05 σ
+0.67 σ
+1.05 σ
-1.80% 03 Apr
VPL Pacific 12.98
Undervalued
Undervalued
Undervalued
14.52 14.30 14.25
-1.14 σ
-1.45 σ
-1.12 σ
-5.71% 03 Apr
FLLA Latin America 10.15
Fair
Fair
Fair
9.24 11.39 11.49
+0.59 σ
-0.62 σ
-0.88 σ
+2.10% 03 Apr
AFK Africa 7.51
Cheap
Cheap
Cheap
11.17 12.86 12.36
-2.83 σ
-3.13 σ
-3.56 σ
+2.07% 03 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).

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: 03 April 2025