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: 24.34
Highest deviation vs 10Y Avg P/E:
Europe: +2.99 σ
CONTINENTS P/E RATIO
Markets grouped geographically
Last Update: 06 June 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 Time (ET)
VTI United States 24.34
Overvalued
Expensive
Expensive
21.93 19.17 16.35
+1.28 σ
+2.20 σ
+3.18 σ
+3.36% 06 Jun
VT All World 20.15
Overvalued
Expensive
Expensive
18.25 16.50 14.61
+1.21 σ
+2.23 σ
+3.23 σ
+5.52% 06 Jun
VGK Europe 16.89
Overvalued
Expensive
Expensive
14.00 13.70 12.48
+1.76 σ
+2.99 σ
+3.11 σ
+12.03% 06 Jun
AAXJ Asia ex-Japan 15.08
Fair
Overvalued
Overvalued
14.64 13.83 13.29
+0.31 σ
+1.16 σ
+1.49 σ
+7.31% 06 Jun
VPL Pacific 14.15
Fair
Fair
Fair
14.53 14.26 14.24
-0.29 σ
-0.13 σ
-0.08 σ
+7.18% 06 Jun
FLLA Latin America 10.44
Fair
Fair
Fair
9.16 11.31 11.50
+0.91 σ
-0.44 σ
-0.71 σ
+10.16% 06 Jun
AFK Africa 9.95
Fair
Undervalued
Undervalued
11.02 12.75 12.34
-0.84 σ
-1.61 σ
-1.72 σ
+17.72% 06 Jun
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: 06 June 2025