Global Valuation Updates!
For new subscribers, you may not be aware that we’ll share the global stock market valuations each quarter. You can view all prior quarterly updates here.
Quarterly CAPE Ratio Updates
Median CAPE Ratio: 15
25% cheapest: 10
25% most expensive: 25
Average of Foreign Developed: 19
Average of Foreign Emerging: 14
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.
Since we get asked this question a lot, in addition to The Idea Farm, here are a few great free resources for global stock market valuations…
1. Research Affiliates
2. Barclays
3. Professor Shiller
4. Professors French & Fama
5. Professor Damodaran
A few great paid choices include Global Financial Data and Ned Davis Research. Let us know if we’re missing any!
MSCI Investable Market Indices
| CAPE | CAPD | CAPCF | CAPB | Average Rank | Dev or Emerging | Real Drawdown % | |
| Egypt | 6.7 | 18.4 | 3.9 | 0.8 | 2 | E | -79.68 |
| Poland | 8.1 | 20.1 | 3.6 | 0.8 | 3 | E | -58.67 |
| Colombia | 11.5 | 22.5 | 6.5 | 0.9 | 7 | E | -38.8 |
| Turkey | 7.7 | 27.6 | 6 | 1 | 8 | E | -52.73 |
| Singapore | 11.3 | 20 | 8.9 | 1 | 10 | D | -22.88 |
| Spain | 14.1 | 18.8 | 6.1 | 1.1 | 10 | D | -33.54 |
| Chile | 12.2 | 23.4 | 6.6 | 1.1 | 11 | E | -47.43 |
| Austria | 12.1 | 33 | 5.4 | 1 | 12 | D | -46.92 |
| Brazil | 12.2 | 21.2 | 7.1 | 1.4 | 12 | E | -32.24 |
| Czech Republic | 14.3 | 17.3 | 6.1 | 1.5 | 12 | E | -20.78 |
| Hungary | 9.4 | 42.6 | 3.6 | 1.1 | 12 | E | -42.41 |
| Italy | 17.3 | 27.6 | 5.1 | 1 | 13 | D | -43.4 |
| Malaysia | 13.3 | 24.7 | 8.4 | 1.3 | 15 | E | -17.23 |
| Germany | 13.9 | 30.4 | 6.7 | 1.4 | 16 | D | -29.13 |
| U.K. | 14.6 | 24.3 | 7.9 | 1.6 | 17 | D | -9.29 |
| Peru | 11.8 | 27.2 | 11.1 | 1.4 | 17 | E | -48.24 |
| Greece | -2.4 | 30.8 | 4.6 | 0.5 | 18 | E | -96.67 |
| Portugal | 23.9 | 23 | 6 | 1.5 | 18 | D | -49.13 |
| Korea | 12.5 | 61.2 | 6.4 | 1.1 | 19 | D | -32.83 |
| Hong Kong | 14 | 31.6 | 9.9 | 1.1 | 20 | D | -19.32 |
| China | 11.9 | 39.8 | 9.3 | 1.4 | 20 | E | -41.9 |
| Norway | 18.1 | 29.2 | 7.8 | 1.7 | 23 | D | -10.76 |
| Thailand | 15.5 | 30.1 | 8.9 | 1.8 | 23 | E | -21.71 |
| Philippines | 14 | 44.1 | 8.8 | 1.6 | 24 | E | -51.07 |
| South Africa | 15.4 | 29 | 9.8 | 1.9 | 24 | E | -17.79 |
| Belgium | 17.1 | 28.7 | 10.4 | 1.6 | 24 | D | -25.35 |
| Australia | 17.9 | 24.2 | 11.8 | 2 | 26 | D | -14.25 |
| Mexico | 16.8 | 40.1 | 7.9 | 1.9 | 26 | E | -17.44 |
| Indonesia | 15.9 | 36.3 | 9.8 | 2.3 | 28 | E | -18.02 |
| France | 20.8 | 36.8 | 10.3 | 1.7 | 28 | D | -21.27 |
| Japan | 19.6 | 57.4 | 10 | 1.5 | 29 | D | -12.12 |
| New Zealand | 21.7 | 28.6 | 12.1 | 2.1 | 30 | D | -30.27 |
| Canada | 20.9 | 36.2 | 10.9 | 1.9 | 30 | D | -17.18 |
| Israel | 17.5 | 49.1 | 11.1 | 1.7 | 30 | D | -20.12 |
| Finland | 22.1 | 28.2 | 12.4 | 2.2 | 30 | D | -45.22 |
| Sweden | 17.5 | 37.3 | 12.7 | 2.4 | 33 | D | -30.85 |
| Taiwan | 21.8 | 39 | 12.5 | 2.5 | 35 | E | -22.76 |
| Ireland | 22.5 | 59.9 | 13.2 | 1.8 | 36 | D | -34.62 |
| Switzerland | 23.6 | 38.5 | 17 | 3 | 37 | D | -18.81 |
| Netherlands | 23.6 | 51.2 | 15 | 2.4 | 38 | D | -35.1 |
| U.S. | 28 | 67.9 | 17.2 | 3.8 | 41 | D | -25.6 |
| India | 28.2 | 98.5 | 17.8 | 3.5 | 42 | E | -20.18 |
| Denmark | 34.8 | 84.3 | 23.4 | 5.3 | 43 | D | -17.54 |
| Russia | E | -100 |
Good investing,
The Idea Farm Team
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