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Where you’ll find the cheapest and most expensive stock markets in the world

Where you’ll find the cheapest and most expensive stock markets in the world

How do you know if stock markets look cheap or expensive? We have created a Valuation Tracker, which includes an interactive map and a table, that show you how major global equity indices are valued on various financial metrics each quarter.

By clicking on our map, you’ll discover the price-to-earnings (P/E) ratios of stock markets around the world. The higher the ratio, the more expensive a stock or market is relative to its earnings.

But of course, the P/E ratio isn’t the only metric that defines whether a stock’s valuation makes it an attractive investment. There are other metrics, such as price-to-book (P/B) ratios, free cash flow yield or dividend yield that an investor can take into account.

So, we have also built a table that shows you how these metrics are valued on equity indices worldwide. Each quarter we will send subscribers new data.

To put everything in context and give you an understanding of how our managers use valuations in their investment strategies, our experts provide commentary about where the global investment opportunities and risks for equities are over the long-term. 

Valuation Tracker Interactive Map: P/E ratio map of stock markets around the world

Source: Bloomberg as at 30 Jun 2025

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Find out how the major equity indices around the world are valued on other financial metrics with our table

Hear from our experts

What are the investment opportunities and risks for equities in Europe?

Interest in Europe appears to be turning more positive as investors question the end of US exceptionalism and various significant, pro-active European fiscal developments drive a pick-up in regional growth expectations. 

While valuations across European markets have broadly responded positively to this shift, there are still some extremely interesting valuations both at the sector and individual company level, which a fundamentals-based stock picking approach can exploit. 

We look for opportunities where positive change has been mispriced by the market and, while we manage balanced portfolios across all sectors, we see excellent long-term return potential in areas including basic materials, energy, utilities, and banks. 

Key risks in the near term include US tariffs and China, but these are largely already reflected in valuations, in our view. 

What are the investment opportunities and risks for equities in Asia?

Asian markets remain well below their long-term averages and trade at a steep discount to developed markets, especially the US.

Asia offers strong investment opportunities, including leading tech and manufacturing firms in North Asia, fast-growing consumer and e-commerce sectors in India and Southeast Asia, and exposure to rising incomes through robust financial institutions. The region also plays a key role in global supply chains for AI, renewables, batteries, and commodities.

While geopolitical risks, such as US trade tariff policies, remain a concern, many Asian companies have strong balance sheets and competitive advantages that may support resilience. If global trade shifts away from China, other Asian economies could benefit, boosting intra-Asian trade.

What are the investment opportunities and risks for equities globally?

The key advantage of investing globally is the breadth of the opportunity set. For active managers, there is an enviable choice of stocks across sectors and geographies. At any given time, there will always be areas of the market that are out of favour.

We can exploit this by finding those companies where sentiment is against them in the short term, perhaps for geopolitical reasons, but the long-term fundamentals of the business remain intact.

Investing globally can also help manage risk. Some regional markets are more exposed to specific sectors or industries. By investing globally, we can ensure that we can manage style and factor risks to ensure a diversified portfolio.

Even within a global portfolio, you can still be exposed to themes or market fads. By focusing on valuation and employing a range of risk management tools, such as correlation analysis, we can offset these risks.

What are the investment opportunities and risks for equities in the UK?

UK equities offer exposure to many high-quality, cash-generative companies trading at valuations below global peers, even after taking account of differences in return-on-capital. They offer compelling income streams and capital growth that can provide a valuable defence against inflation.

Sector exposures are very different from other global equity markets, bringing additional diversification benefits.

Stability of government and ongoing improvement in relations with European capitals after years of distance over issues relating to the EU are helpful to sentiment.

Key risks include the growth of protectionism and other geopolitical events that have the potential to spark a prolonged global recession.

What are the investment opportunities and risks for equities in the US?

We see significant upside potential in regional banks and healthcare, with attractive long-term prospects in HMOs, select consumer staples, and a few high-quality media names.

We continue to favor communication services and technology stocks, which we believe will gain market share in advertising and benefit from advancements in artificial intelligence initiatives.

We believe market volatility may continue into 2025, given economic uncertainty related to the new White House Administration’s fiscal policies (effect of tariffs), along with sanctions (Iran, Russia, and China) and ongoing conflict in the Middle East and the Russia/Ukraine war.

 

Valuation Tracker Table: Financial metrics of stock markets around the world

Index Country P/E Ratio P/B Ratio Dividend Yield Free Cash Flow Yield
US & Canada
S&P/TSX COMPOSITE INDEX Canada 19.26 2.17 2.78 4.92
S&P 500 INDEX United States of America 26.34 5.24 1.32 2.80
Europe
OMX HELSINKI BENCHMARK Finland 15.80 1.89 4.59 5.36
CAC 40 INDEX France 15.99 1.83 3.37 5.87
DAX INDEX Germany 20.45 2.00 2.58 5.91
FTSE MIB INDEX Italy 11.11 1.51 5.14 5.75
AEX-Index Netherlands 14.44 2.30 2.60 6.09
WSE WIG INDEX Poland 13.97 1.52 5.02 11.57
MOEX Russia Index Russia #N/A N/A #N/A N/A #N/A N/A #N/A N/A
IBEX 35 INDEX Spain 11.79 1.73 5.88 4.69
OMX Stockholm All-Share Sweden 20.13 2.06 2.94 5.16
SWISS MARKET INDEX Switzerland 17.81 3.83 3.24 6.11
FTSE 100 INDEX United Kingdom 13.16 1.98 3.61 6.91
Asia
SHANGHAI SE COMPOSITE China 16.74 1.39 2.97 4.18
S&P BSE SENSEX INDEX India 24.62 3.58 1.65 2.49
JAKARTA COMPOSITE INDEX Indonesia 16.49 1.86 5.69 5.20
TOPIX INDEX (TOKYO) Japan 15.44 1.46 2.66 4.12
PSEi - PHILIPPINE SE IDX Philippines 11.09 1.38 3.21 3.34
Straits Times Index STI Singapore 12.04 1.28 5.49 5.79
KOSPI INDEX South Korea 14.14 1.03 2.02 3.46
TAIWAN TAIEX INDEX Taiwan 18.19 2.33 2.96 3.25
STOCK EXCH OF THAI INDEX Thailand 13.03 1.03 4.66 9.42
Oceania
S&P/ASX 200 INDEX Australia 21.34 2.41 3.28 4.18
Latin America
MSCI ARGENTINA Argentina 9.43 1.29 4.80 -3.16
MSCI BRAZIL Brazil 10.63 1.69 6.02 8.43
MSCI CHILE Chile 13.35 1.49 4.28 7.67
MSCI MEXICO Mexico 16.92 2.11 5.10 6.14
South Africa
FTSE/JSE AFRICA ALL SHR South Africa 16.23 1.87 3.76 5.36

Source: Bloomberg as at 30 Jun 2025

The stock market indices used were as follows: United States of America = S&P 500; Canada = S&P/TSX Composite; France = CAC 40; Germany = DAX; Spain = IBEX 35; Switzerland = SMI; Netherlands = AEX-Index; United Kingdom = FTSE100; Italy = FTSE MIB; Poland = WSE WIG Index; Finland = OMX Helsinki Benchmark; Sweden = OMX Stockholm All-Share; China = Shanghai SE Composite; Singapore = STI; Taiwain = Taiwan Taiex; South Korea = KOSPI; Indonesia = Jakarta Composite; Philippines = Philippine SE; Thailand = Stock Exchange of Thailaind; India = Sensex; Australia = S&P/ASX 200; Japan = Topix; Mexico = MSCI Mexico; Brazil = MSCI Brazil; Argentina = MSCI Argentina; Chile = MSCI Chile; South Africa = FTSE/JSE Africa All Share; Russia = MOEX Russia.

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