Global Equities Up On Investor Confidence, Still Below Median

Global equities have been rerated this year, climbing from a recent low of 12x in 2011 to 16x now. While this is still under the long-term median of 17x, it’s another sign of investor confidence in the recovering global economy.

“Japan is highest rated on a trailing PE of 19x. Next most expensive on this crude measure is Australia on 18x, followed by the US on 17x and Europe ex-UK on 17x,” according to a report from Citi. Emerging markets and the UK have the lowest trailing PEs.

Global equities valuation

Japan is also most expensive when you look at cyclically adjusted PE (CAPE), although this measure makes US equities appear more expensive while European and emerging...