Country P/E Ratios: Nasdaq Highest, Netherlands Lowest

Hickey and Walters (Bespoke) submit: There seemed to be quite a bit of interest in our post Thursday about China's Shanghai Composite now having a lower valuation than the Nasdaq.

Below we have updated our chart of current P/E ratios for the major indices of selected countries. As shown, the Nasdaq currently has the highest trailing 12-month P/E of the countries we analyzed. The Netherlands, Germany and the Euro Stoxx Index have the lowest valuations.

click to enlarge

Looking at estimated P/E ratios for the current year, we see that Japan's Nikkei-225 Index is the highest, while the UK's FTSE 100 is the lowest.

Comments

[Mark Schoen...:]

Numerator or Denominator?
Your 2008 estimated P/E ratios show a decline of approximately 10 to 15% from current (2007) levels. Does your modeling suggest that equity prices will be declining or that earnings will be higher in 2008?

2007 Jul 10 12:12 PM