CAP Updates
Quarterly CAPE Ratio Updates!
Using the CAPE ratio on foreign stocks would have worked great in 2015. At least on a relative level, on an absolute basis almost everything lost money.
As a reminder, we transitioned to using the MSCI IMI Indexes this year as we believe it is most accurate for the smaller countries. It doesn’t really change the conclusions at all for the countries but it does change the numbers a bit for a few of the smaller ones. But the cheap names remain cheap(er)…
Average CAPE Ratio: 15.9
25% most expensive: 23.7 (U.S. in this bucket)
25% cheapest 9.2!
Average emerging country is 13.4, developed 17.9 (not market cap weighted).
MSCI Investable Market Indices
| CAPE | CAPD | CAPCF | CAPB | Average Rank | Dev or Emerging | |
| Brazil | 7.4 | 16.2 | 4.7 | 1 | 4 | E |
| Russia | 4.6 | 25.7 | 3 | 0.7 | 5 | E |
| Poland | 9.1 | 19.2 | 4.4 | 1.1 | 5 | E |
| Portugal | 10.9 | 16.4 | 3.9 | 1.1 | 6 | D |
| Czech Republic | 9.4 | 13 | 4.5 | 1.3 | 6 | E |
| Greece | 16.9 | 4.2 | 1.1 | 0.2 | 7 | E |
| Egypt | 9.6 | 19.5 | 5.7 | 1.3 | 9 | E |
| Italy | 12.8 | 21.8 | 4.6 | 1 | 10 | D |
| Spain | 11.4 | 18.2 | 5.6 | 1.4 | 10 | D |
| Hungary | 9.2 | 35.1 | 4.6 | 1.2 | 11 | E |
| Austria | 12.7 | 33.5 | 5.3 | 1 | 13 | D |
| Peru | 8.8 | 21.9 | 7.5 | 1.9 | 13 | E |
| Turkey | 9.3 | 31.5 | 6.7 | 1.4 | 14 | E |
| Singapore | 11.4 | 25.6 | 8.7 | 1.3 | 14 | D |
| Norway | 11.7 | 27.4 | 6.1 | 1.6 | 15 | D |
| U.K. | 12.3 | 27.1 | 8 | 1.9 | 18 | D |
| Chile | 13.9 | 31.2 | 8.1 | 1.5 | 18 | E |
| Colombia | 14.1 | 26.2 | 10.5 | 1.3 | 18 | E |
| China | 12.4 | 38 | 8.1 | 1.7 | 20 | E |
| Korea | 12.6 | 72.7 | 7.1 | 1.3 | 21 | D |
| Australia | 15.5 | 21.4 | 10.7 | 1.9 | 21 | D |
| Taiwan | 17.6 | 27.3 | 8.6 | 1.8 | 22 | E |
| France | 16.6 | 33.4 | 8.8 | 1.7 | 22 | D |
| Hong Kong | 14.8 | 34.4 | 11.3 | 1.4 | 23 | D |
| Thailand | 13.9 | 32.7 | 9 | 2 | 23 | E |
| Canada | 17.1 | 36 | 9 | 1.9 | 25 | D |
| New Zealand | 19 | 24 | 10 | 2.1 | 26 | D |
| Finland | 17.8 | 27.8 | 10.1 | 2.2 | 27 | D |
| Malaysia | 16.4 | 37.1 | 11.1 | 2 | 28 | E |
| Germany | 18.2 | 42.4 | 9.2 | 2 | 29 | D |
| Israel | 17 | 41.2 | 11.8 | 2 | 30 | D |
| South Africa | 18.1 | 37.9 | 12.7 | 2.8 | 33 | E |
| Japan | 26 | 74 | 10.1 | 1.7 | 33 | D |
| Indonesia | 17.1 | 42.4 | 11.1 | 3 | 34 | E |
| Netherlands | 18.5 | 41.5 | 11.7 | 2.2 | 34 | D |
| Belgium | 21.2 | 40 | 12.6 | 2.2 | 34 | D |
| Mexico | 20.6 | 65.4 | 10.9 | 2.9 | 36 | E |
| Sweden | 19.8 | 41.4 | 14.1 | 2.8 | 36 | D |
| India | 18.7 | 83 | 13.1 | 3 | 39 | E |
| Ireland | 27.4 | 51.9 | 14.4 | 2.2 | 39 | D |
| Philippines | 21.2 | 60 | 13.6 | 3 | 39 | E |
| Switzerland | 22.5 | 45.6 | 17 | 3 | 40 | D |
| U.S. | 24.5 | 68.6 | 14.5 | 3.2 | 42 | D |
| Denmark | 39.8 | 124.7 | 24.1 | 4.7 | 44 | D |
Sectors
| Energy | 11.1 |
| Financials | 16.0 |
| Utilities | 19.0 |
| Industrials | 20.2 |
| Materials | 20.5 |
| Staples | 23.0 |
| Telecom | 23.1 |
| IT | 25.5 |
| Health Care | 28.8 |
| Discretionary | 36.7 |