Ignoring all the noise about the ECB, Germany, Merkel, which Government will fall next, haircuts, insurance policyetc ; almost all the quantitve indicators indicate a very cheap European market. The numbers are as of November 28th, 2011. I a going to do some comps to US market valuation on that date. The numbers in the chart below are based on Morgan Stanley numbers for MSCI/Europe, and my own calculations. I also broke up the numbers for the UK, Germany and France. Overall it seems the market valuations are far cheaper in Europe than the US.
All figures are approximate, especially since they are being updated during market hours. I will be posting a full article on US market valuations later today.