Country P/E Ratios

Yesterday we released a B.I.G. Tips report to our Bespoke Premium members taking a look at valuations, growth expectations, and stock market performance for more than 20 countries that have trackable ETFs. The report highlights which countries currently look the most and least attractive based on various characteristics.

One simple data set highlighted was the current P/E ratios for these countries. Below is a chart showing these valuations. As shown, Russia currently has the lowest P/E ratio at 6, followed by Italy (10) and France (11). At 14, the US is more attractive based on its P/E ratio than most countries. Taiwan has the highest P/E at 60, and the UK is surprisingly bad at 34. Its valuation is worse than China's. Germany also has a very high P/E ratio at 27.

click to enlarge

Comments

[InnocentsAb...:]

Of interest, it appears as if the P/E ratio is related to rule of law. Corrupt countries demand a higher P/E ratio. Might I suggest normalizing the P/E ratio with a corruption index and an accounting accuracy index.

Jun 25 01:45 PM

[InnocentsAb...:]

Also, the index has the potential to be skewed by earnings timing.

Suggest the index be based on next quarter's projected earnings.

Jun 25 01:47 PM

[indeolie:]

>Corrupt countries demand a higher P/E ratio.
Ah those famously corrupt countries Germany and Switzerland...

Jun 26 08:38 AM

[Vinsanity:]

Taiwan? Corrupt?

On Jun 25 01:45 PM InnocentsAbroad wrote:

> Of interest, it appears as if the P/E ratio is related to rule of
> law. Corrupt countries demand a higher P/E ratio. Might I suggest
> normalizing the P/E ratio with a corruption index and an accounting
> accuracy index.

Jun 26 09:18 AM

[Obi-Wan:]

Italy.......NOT corrupt??????????

Jun 26 09:21 AM

[predict_what:]

Russia...... the least corrupt??????????


On Jun 25 01:45 PM InnocentsAbroad wrote:

> Of interest, it appears as if the P/E ratio is related to rule of
> law. Corrupt countries demand a higher P/E ratio. Might I suggest
> normalizing the P/E ratio with a corruption index and an accounting
> accuracy index.

Jun 27 12:10 AM