Biggest Increases and Decreases in Country P/E Ratios in 2008

Below we highlight the country indices from the list in our last post that have seen the biggest increases and decreases in P/E ratios (trailing 12-month) in 2008.  As shown, Bulgaria's P/E ratio has fallen the most of any other country this year, from 48.46 down to 6.22.  China ranks second, with its P/E ratio falling from 44.28 to 14.55.  A 14.55 trailing P/E for China is very low. 

Just five countries of the 84 on our list have seen their P/E ratios actually increase this year.  Unfortunately, the US is one of the five.  During bear markets, P/Es usually contract because the price (P) of the index falls more than earnings (E).  Since P/Es have increased (albeit slightly) in the US in 2008, it means earnings have fallen even more than price.

Comments

[Steven Hansen:]

an this chart is for those who think stocks are cheap. i think we are getting ready for another run on this year's lows.

2008 Nov 10 10:36 PM