European Stock Market Valuation December 2011

Every month, I calculate the US equity markets valuation. There is little data on Europe, but someone sent me a Morgan Stanley Document with a slew of data on European market valuations.

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.

Charlie Munger: Invert And Use “Disconfirming Evidence”

Charlie MungerCharlie Munger is considered to be one of the best investors and thinkers alive today. His thoughts and statements on investment research, investment psychology, and general rational behavior are often incredibly insightful. Anyone can learn something from this billionaire investor and philosopher. Q2 2020 hedge fund letters, conferences and more If you’re looking for value Read More

click to enlarge

European Stock Market Valuation