Median Valuations Around The World – Interactive Chart by Eric Bush, CFA, Gavekal Capital Blog
In the table below, we show median P/E, P/CF, P/S, and P/B value for every country in the developed and emerging markets. Also, if you hover over an individual country’s valuation bar, you can see the median year-to-date performance through November 5th. While we fully suggest that the reader click through to come to their own conclusions, here are few highlights:
- On price to earnings basis, developed market Europe countries are congregating near on the expensive side. 11 out of the top 15 most expensive countries are in Europe
- On a price to cash flow basis, Peru is major outlier at 30x but that’s due to the fact that there is only one stock in the GKCI Peru Index (Credicorp, a diversified bank). Greece is an outlier on the low end has the median price to cash flow valuation there is just 1.04x cash flow.
- On a price to sales basis, only four countries currently have the a median ratio below 1x. 18 countries have a price to sales ratio above 2x.
- On a price to book basis, only three countries are trading below 1x book. We again see developed market European equities looking like some of the most expensive stocks in the world based on this metric.