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: 25.20
Highest deviation vs 10Y Avg P/E:
Europe: +3.14 σ
CONTINENTS P/E RATIO
Markets grouped geographically
Last Update: 28 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 Time (ET)
VTI United States 25.20
Overvalued
Expensive
Expensive
21.73 19.03 16.28
+1.87 σ
+2.73 σ
+3.65 σ
-4.45% 10:00 AM
VT All World 20.67
Overvalued
Expensive
Expensive
18.11 16.42 14.56
+1.67 σ
+2.71 σ
+3.68 σ
-1.61% 10:00 AM
VGK Europe 16.99
Overvalued
Expensive
Expensive
13.94 13.69 12.45
+1.92 σ
+3.14 σ
+3.27 σ
+6.26% 10:00 AM
AAXJ Asia ex-Japan 15.30
Fair
Overvalued
Overvalued
14.58 13.81 13.26
+0.50 σ
+1.41 σ
+1.71 σ
-1.14% 10:00 AM
VPL Pacific 14.04
Fair
Fair
Fair
14.52 14.30 14.25
-0.35 σ
-0.28 σ
-0.18 σ
+0.95% 09:59 AM
FLLA Latin America 10.61
Fair
Fair
Fair
9.24 11.39 11.49
+0.90 σ
-0.39 σ
-0.57 σ
+7.23% 09:45 AM
AFK Africa 9.34
Undervalued
Cheap
Cheap
11.17 12.86 12.36
-1.42 σ
-2.06 σ
-2.22 σ
+7.36% 09:59 AM
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: 28 April 2025