A higher price to earnings ratio (CAPE) means a country’s stock market is more expensive. A lower number is less expensive.
- United States Stock Market: 38
- Average of Foreign Developed Stock Markets: 20
- Average of Foreign Emerging Stock Markets: 17
The rankings below show the price you are paying for the earnings, dividends, cash flow and book value for the companies within these countries.
| *Abbreviations: |
| CAPE: Cyclically Adjusted Price Earnings – a valuation measure that uses real earnings per share (EPS) over a 10-year period to smooth out fluctuations in corporate profits that occur over different periods of a business cycle. |
| CAPD: Cyclically Adjusted Price Dividends – a valuation measure that uses dividends over a 10-year period to smooth out fluctuations in corporate profits that occur over different periods of a business cycle. |
| CAPCF: Cyclically Adjusted Price Cash Flow – a valuation measure that uses cash flow over a 10-year period to smooth out fluctuations in corporate profits that occur over different periods of a business cycle. |
| CAPB: Cyclically Adjusted Price Book – a valuation measure that uses book value over a 10-year period to smooth out fluctuations in corporate profits that occur over different periods of a business cycle. |
Source: Meb Faber & Cambria Funds
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