Global Valuation Updates!

Quarterly CAPE Ratio Updates

Median CAPE Ratio: 18
25% cheapest: 13
25% most expensive: 31

Average of Foreign Developed: 23
Average of Foreign Emerging 16

We’ve mentioned this note in every update but bears repeating.  We use the MSCI Investable Market Indices below, but MSCI also calculates their Standard Indices too.  IMI includes more companies and in general is more representative of the entire market.  It really makes no difference for any of the countries except the very smallest ones, such as Greece and Egypt.  For both series the CAPE ratios are almost always near identical.

So, this is one reason we have always used a valuation composite across the variables below.  If one is giving a screwy result, or perhaps a market has a structural bias to one variable, we want to average it out.  So, in this case Greece is cheap on other metrics just not on CAPE.

Here it is in Excel too.

MSCI Investable Market Indices
CAPE CAPD CAPCF CAPB Average Rank Dev or Emerging Real Drawdown %
Egypt 9.7 25.6 5.5 1.1 4 E -73.56
Poland 11.2 27.3 5 1 4 E -45.35
Chile 11.9 23.2 6.4 1.2 5 E -44.38
Czech Republic 14.7 17.7 6.2 1.6 5 E -19.5
Spain 15.5 20.2 6.7 1.1 8 D -30.52
Turkey 9 32 7 1.2 9 E -47.92
Portugal 23.3 22.1 5.8 1.5 10 D -47.85
Colombia 14 26.7 8.1 1.2 10 E -22.54
Malaysia 14.2 26.7 9 1.4 13 E -8.44
Singapore 13.1 23.6 10.2 1.1 14 D -9.7
U.K. 15.9 26.7 8.7 1.8 14 D -1.81
Brazil 15.7 27.3 9 1.8 16 E -15.06
Norway 19 31.2 8.2 1.9 16 D -1.08
Greece -2.6 33 5.3 0.6 17 E -96.17
Hungary 16.6 71.4 6.4 1.4 17 E -28.94
Italy 23.3 36.5 6.6 1.1 17 D -34.48
Thailand 16.6 32.6 9.6 2 19 E -15.47
Austria 17.8 47.9 7.7 1.1 19 D -38.75
China 13.1 43.5 10.1 1.4 19 E -44.21
Korea 15.4 76.5 7.9 1.3 19 D -18.46
Hong Kong 14.7 33.8 10.5 1.2 20 D -18.08
Mexico 18.9 46.1 8.9 2.3 21 E -1.47
Indonesia 16.2 37.5 10.2 2.5 22 E -11.75
Germany 19.1 41.7 9.1 1.7 22 D -16.68
Australia 19.6 26.5 12.9 2.3 23 D -0.16
South Africa 17.7 33.1 11.4 2.1 23 E -3.06
Belgium 20.1 32.7 11.8 1.8 25 D -16.24
Peru 14.7 34.3 13.8 2.1 25 E -24.03
Philippines 16.9 53.2 10.7 1.9 26 E -41.81
New Zealand 24.2 31.7 13.4 2.4 28 D -21.93
Japan 21.2 61.3 10.6 1.6 28 D -7.6
France 25.5 44.9 12.6 2 30 D -11.4
Canada 25.1 43 12.9 2.3 30 D -1.08
Finland 27.6 34.9 15.4 2.4 32 D -39.21
Israel 21.2 58.5 13.4 2.1 32 D -4.59
Sweden 24 50.5 17.4 3 35 D -15.2
Taiwan 28.7 49.7 16.1 3.1 35 E -6.25
Switzerland 28.3 45.9 20.5 3.5 36 D -7.56
Netherlands 31.5 67.5 19.8 2.8 38 D -25.28
Ireland 32.6 83.2 18.5 2.2 39 D -22.72
India 32.8 116.3 20.7 4.1 41 E -8.34
U.S. 36.2 87.3 22.1 4.8 42 D -7.81
Denmark 39.9 96.4 26.5 5.9 43 D -9
Russia 😱 😱 😱 😱 😱 E -100
US Global
Communication Services 27.4 15.6
Discretionary 50 18.7
Energy 25.8 31.6
Financials 20.8 12.7
Health Care 39.5 25.2
Industrials 32.2 18.8
IT 61.9 23.3
Materials 36.3 18.7
Staples 29.3 21.1
Utilities 28.9 16.8 `

Good investing,
Meb Faber
theideafarm.com