Stock market ratios explained
Over the past years, equity investors have managed to generate real capital growth of about 7 percent annually. No other form of investment - whether bonds, cash, gold or real estate - offers comparable return potential. But does it still pay to invest in equities at this point in time, and what returns can investors expect in the long term?
StarCapital determines the relative attractiveness of 6, companies from 66 countries in 13 regions and 39 sectors on a monthly basis. Academic research has shown that undervalued equity markets have achieved higher future returns in the long run than their overvalued counterparts, which holds for different valuation measures alike.
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More detailed information is presented in our research paper Predicting Stock Market Returns Using the Shiller-CAPE: An Improvement Towards Traditional Value Indicators? The following world map displays current valuation measures in different regions. You can zoom into regions by using the buttons above the map, and change the valuation measures for the selected region by using the buttons below the map.
Which future performances may investors expect? CAPE-based long-term performance forecast are presented here. Norbert Keimling Head of StarCapital Research info starcapital.
Several fundamental valuation indicators like the cyclically adjusted Shiller-PE or Price-To-Book-Ratio are presented in the following table. The published stock market ratios explained does not constitute investment advice or recommendations. The presented valuation ratios are market-capitalization-weighted.
PE Price-Earnings-RatioPC Price-Cashflow-RatioPS Price-Sales-Ratio and DY Dividend-Yield are based on trailing 12 month values. PB Price-Book-Ratio is based on the most recent company financal statements. To ensure comparability across countries, the RS-Indicators are calculated in EUR.
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In the above table, empty cells represent negative or unavailable values. We exclusively examine companies for which data is supplied by at least two music transcription jobs work home providers.
Outliers are assessed qualitatively and removed where necessary. The country selection is based on the Datastream Global Equity Universe 66 countries. Only the 40 most important and most liquid countries are shown in the table, only for them StarCapital Scores are calculated.
No responsibility is taken for the correctness of this information. As of Aprilwe have extended the underyling equity universe by 2, companies to achieve a broader market coverage.
The extended equity universe also includes companies from 27 new emerging markets not shown in the table above: Argentina, Bahrain, Bulgaria, Chile, Colombia, Croatia, Cyprus, Egypt, Estonia, Jordan, Kuwait, Lithuania, Luxembourg, Malta, Marocco, Nigeria, Oman, Pakistan, Long call option greeks, Qatar, Romania, Slovakia, Slovenia, Sri Lanka, United Arab Emirates and Venezuela.
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The following chart shows the current distribution of all considered countries and 39 sectors in our universe please refer to our information on Sector Valuation for more information. The most attractive countries are shaded blue, less attractive countries are shaded red:. As the relative attractiveness of a market does not necessarily coincide with it's absolute valuation level, we calculate a fair value corridor for each market.
This fair value is based exclusively on fundamental valuation criteria, such as the Cyclically adjusted PE CAPE or the PB. The presented information is proprietary to StarCapital, and may not be copied or distributed without our prior, written permission. We do not guarantee that the information is accurate, complete or timely. Stock Market Valuation Stock Market Expectations Sector Valuation Analyst's Forecasting Accuracy Login.
Global Stock Market Valuation Ratios deutsche Version. For queries or additional information please contact: Global Overview of Fundamental Valuation Ratios as of document.
Global Stock Market Valuation Ratios (Shiller PE, CAPE, PB)
World Americas Europe Asia. CAPE PE PC PB PS DY RS 26W RS 52W.
Control the sliders to filter the table according to your preferences: Fundamental Valuation Ratios in International Equity Markets as of document. Country- and Sector-Weights in our universe as of document. Global weight as of document.