This is an outdated sample and is merely illustrative. Please do not use this as the source of any market investing decisions.
Quarterly CAPE Ratio Updates!
Median CAPE Ratio:
25% most expensive: 23 (U.S. in this bucket)
25% cheapest 10
Average of Foreign Developed 17
Average of Foreign Emerging 14
We’ve mentioned this a lot in the past 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, with one glaring exception – again, Greece, which depending on the series you use has a CAPE ratio of -29 or 1. Ha.
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 cheapest on CAPD, CAPB, and CAPCF, just not on CAPE.
Anyways, after the monster run in Brazil they’ve moved off the bottom of the barrel for cheapest markets but still in the top 6. The cheap stuff is dominated by the still struggling Europe…
MSCI Investable Market Indices
| CAPE | CAPD | CAPCF | CAPB | Average Rank | Dev or Emerging | |
|---|---|---|---|---|---|---|
| Czech Republic | 8.6 | 11.3 | 4.1 | 1.2 | 4 | E |
| Portugal | 10.6 | 15.4 | 3.7 | 1 | 4 | D |
| Russia | 5.1 | 27.7 | 3.3 | 0.7 | 5 | E |
| Italy | 10.7 | 17.7 | 3.7 | 0.8 | 5 | D |
| Poland | 8.9 | 18.8 | 4.2 | 1.1 | 5 | E |
| Brazil | 9.6 | 20.3 | 6.1 | 1.2 | 8 | E |
| Spain | 10.9 | 16.9 | 5.3 | 1.3 | 8 | D |
| Egypt | 10.4 | 20.8 | 6.1 | 1.3 | 9 | E |
| Greece | -29 | 3.8 | 0.9 | 0.2 | 12 | E |
| Austria | 13.1 | 33.4 | 5.3 | 1 | 13 | D |
| Turkey | 9.4 | 31.7 | 6.9 | 1.4 | 13 | E |
| Norway | 11.5 | 25.9 | 5.9 | 1.5 | 13 | D |
| Singapore | 11.4 | 24.8 | 8.8 | 1.3 | 14 | D |
| Hungary | 10.8 | 42.3 | 5.2 | 1.4 | 16 | E |
| Chile | 14.2 | 32 | 8.3 | 1.5 | 18 | E |
| China | 12.5 | 38.4 | 8.4 | 1.7 | 20 | E |
| Colombia | 15.4 | 27.8 | 11.2 | 1.3 | 20 | E |
| U.K. | 13.7 | 29 | 8.7 | 2 | 20 | D |
| France | 16.6 | 31.7 | 8.6 | 1.6 | 20 | D |
| Korea | 13.1 | 75.6 | 7.3 | 1.3 | 21 | D |
| Australia | 16.1 | 21.9 | 11.1 | 1.9 | 22 | D |
| Israel | 14.6 | 35.4 | 10.1 | 1.7 | 22 | D |
| Finland | 17.6 | 27 | 10 | 2.1 | 23 | D |
| Taiwan | 19 | 29.7 | 9.3 | 1.9 | 23 | E |
| Hong Kong | 15.3 | 35.5 | 11.6 | 1.4 | 24 | D |
| Malaysia | 16 | 35.4 | 10.8 | 1.9 | 24 | E |
| Germany | 17.3 | 39.5 | 8.7 | 1.9 | 25 | D |
| Peru | 13 | 34.2 | 11.6 | 2.6 | 26 | E |
| Japan | 22 | 61.3 | 8.7 | 1.4 | 28 | D |
| Thailand | 17 | 37.9 | 10.8 | 2.3 | 28 | E |
| Canada | 19.6 | 39 | 10.2 | 2 | 29 | D |
| New Zealand | 22 | 27.7 | 11.5 | 2.4 | 29 | D |
| South Africa | 18.6 | 38 | 12.9 | 2.8 | 32 | E |
| Netherlands | 19.2 | 41.9 | 12 | 2.2 | 32 | D |
| Belgium | 22.1 | 39.9 | 13 | 2.2 | 35 | D |
| Sweden | 19.8 | 39.7 | 14.2 | 2.7 | 35 | D |
| Indonesia | 19.5 | 48.4 | 12.9 | 3.4 | 37 | E |
| Ireland | 27 | 50.6 | 13.7 | 2 | 37 | D |
| Switzerland | 21.2 | 40.7 | 15.9 | 2.8 | 37 | D |
| Mexico | 22.3 | 68.3 | 11.6 | 3 | 38 | E |
| India | 19.3 | 84.7 | 13.4 | 3 | 38 | E |
| Philippines | 22.5 | 64.3 | 14.5 | 3.1 | 40 | E |
| U.S. | 25.6 | 69 | 15 | 3.3 | 42 | D |
| Denmark | 34.3 | 101.3 | 20.7 | 4.1 | 44 | D |
SECTORS
| S&P 500 | Current P/E |
|---|---|
| Discretionary | 35 |
| Energy | 15 |
| Financials | 17 |
| Health Care | 30 |
| Industrials | 22 |
| IT | 26 |
| Materials | 25 |
| Staples | 26 |
| Telecom | 28 |
| Utilities | 23 |