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: +2.84 σ
CONTINENTS P/E RATIO
Markets grouped geographically
Last Update: 30 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 | 23.91 |
Overvalued
|
Expensive
|
Expensive
|
21.88 | 19.10 | 16.31 |
+1.09 σ
|
+2.08 σ
|
+3.06 σ
|
+1.72% | 30 May |
| VT | All World | 19.81 |
Overvalued
|
Expensive
|
Expensive
|
18.20 | 16.46 | 14.58 |
+1.04 σ
|
+2.09 σ
|
+3.10 σ
|
+4.01% | 30 May | |
| VGK | Europe | 16.69 |
Overvalued
|
Expensive
|
Expensive
|
13.98 | 13.69 | 12.46 |
+1.67 σ
|
+2.84 σ
|
+3.01 σ
|
+11.11% | 30 May | |
| AAXJ | Asia ex-Japan | 14.56 |
Fair
|
Fair
|
Overvalued
|
14.65 | 13.83 | 13.28 |
-0.06 σ
|
+0.68 σ
|
+1.07 σ
|
+3.86% | 30 May | |
| VPL | Pacific | 13.96 |
Fair
|
Fair
|
Fair
|
14.55 | 14.28 | 14.24 |
-0.45 σ
|
-0.36 σ
|
-0.25 σ
|
+5.93% | 30 May | |
| FLLA | Latin America | 10.26 |
Fair
|
Fair
|
Fair
|
9.22 | 11.35 | 11.50 |
+0.69 σ
|
-0.55 σ
|
-0.81 σ
|
+8.27% | 30 May | |
| AFK | Africa | 9.51 |
Undervalued
|
Undervalued
|
Cheap
|
11.11 | 12.81 | 12.35 |
-1.22 σ
|
-1.91 σ
|
-2.06 σ
|
+13.10% | 30 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: 30 May 2025
