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Head of StarCapital Research
Several fundamental valuation indicators like the cyclically adjusted Shiller-PE or Price-To-Book-Ratio are presented in the following table. The published information does not constitute investment advice or recommendations.
The presented valuation ratios are market-capitalization-weighted. "Weight" provides the actual country weight. PE (Price-Earnings-Ratio), PC (Price-Cashflow-Ratio), PS (Price-Sales-Ratio) and DY (Dividend-Yield) are based on trailing 12 month values. PB (Price-Book-Ratio) is based on the most recent company financal statements. The rounded RS(Relative-Strength)-Indicators (following Levy) divide the current market price by the average price of the previous 26/52 weeks. To ensure comparability across countries, the RS-Indicators are calculated in EUR. The StarCapital-Score is derived from fundamental valuation and relative-strength indicators and measures the relative attractiveness of a country (blue=attractively valued, red=expensive). In the above table, empty cells represent negative or unavailable values. We exclusively examine companies for which data is supplied by at least two independent providers. Outliers are assessed qualitatively and removed where necessary. The country selection is based on the Datastream Global Equity Universe (66 countries). Only the 40 most important and most liquid countries are shown in the table, only for them StarCapital Scores are calculated. The published information does not constitute investment advice or recommendations. No responsibility is taken for the correctness of this information. Source: StarCapital, Thomson Reuters Datastream (Worldscope / IBES), corporate information et al. Note: As of April 2015, we have extended the underyling equity universe by 2,400 companies to achieve a broader market coverage. The extended equity universe also includes 800 companies from 27 new emerging markets not shown in the table above: Argentina, Bahrain, Bulgaria, Chile, Colombia, Croatia, Cyprus, Egypt, Estonia, Jordan, Kuwait, Lithuania, Luxembourg, Malta, Marocco, Nigeria, Oman, Pakistan, Peru, Qatar, Romania, Slovakia, Slovenia, Sri Lanka, United Arab Emirates and Venezuela.
The following chart shows the current distribution of all considered countries and 39 sectors in our universe (please refer to our information on Sector Valuation) for more information. The most attractive countries are shaded blue, less attractive countries are shaded red:
As the relative attractiveness of a market does not necessarily coincide with it's absolute valuation level, we calculate a fair value corridor for each market.
This fair value is based exclusively on fundamental valuation criteria, such as the Cyclically adjusted PE (CAPE) or the PB. We gladly provide more detailed information to Institutional investors in our quantitative value-strategies.
Additional Information “Valuation differences often primarily caused by different sector structures?: To determine to what extent valuation discounts and premiums of a country can be explained by its sector weights, we adjusted the world’s sector weights to match those of the country in this chart.
The presented information is proprietary to StarCapital, and may not be copied or distributed without our prior, written permission. We do not guarantee that the information is accurate, complete or timely.