CAPE Ratio by Country

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The CAPE ratio stands for cyclically adjusted price-to-earnings ratio and is also known as the Shiller P/E, named after Yale University professor Robert Shiller, or the PE 10 ratio. It is a valuation measure that uses real earnings per share (EPS) over 10 years to smooth out fluctuations in corporate profits over different periods of a business cycle. The CAPE ratio is calculated by dividing the share price by the average of the company's earnings in the last ten years, adjusted for inflation.

The CAPE ratio is used to determine whether a stock is over- or under-valued or to analyze a publicly held company's long-term financial performance while considering the impact of different economic cycles on its earnings. The idea is that company earnings tend to be volatile and cyclical fluctuations and can significantly impact the traditional P/E ratio. The CAPE ratio smoothens out the fluctuations.

The CAPE ratio was first given attention when Robert Shiller and John Campbell presented research to the Federal Reserve in 1996, suggesting that the U.S.'s stock prices were increasing much faster than earning. In their 1998 article, "Valuation Ratios and the Long-Run Stock Market Outlook," Shiller and Campbell looked at earnings for the S&P 500 using the CAPE ratio of the past 10 years, going back to 1872. From their findings, the ratio was at a record 28 in January 1997, with the only other comparably high ratio occurring in 1929. Based on the ratio, they predicted that the market's real value would be 40% lower in ten years, which proved to be accurate as the 2008 market crash contributed to the S&P 500 plummeting 60% between October 2007 and March 2009. In June 2018, the CAPE ratio was 33.78, significantly higher than its long-term average of 16.80, only the second time the ratio exceeded 30, the other being in 1929. This sparked a debate about whether or not the ratio portends a significant market correction.

Different countries have different CAPE ratios; however, one country's ratio should not be compared to another country's ratio. The best way to evaluate a country's stock market (determine if it is undervalued or overvalued) is to compare a nation's current CAPE ratio to its historical average.

Below is the CAPE ratio for the largest economies in the world as of June 30, 2020:

CAPE Ratio by Country

Rank Country 2021 Population
China1,444,216,107
India1,393,409,038
United States332,915,073
Indonesia276,361,783
Pakistan225,199,937
Brazil213,993,437
Nigeria211,400,708
Bangladesh166,303,498
Russia145,912,025
Mexico130,262,216
Japan126,050,804
Ethiopia117,876,227
Philippines111,046,913
Egypt104,258,327
Vietnam98,168,833
Dr Congo92,377,993
Turkey85,042,738
Iran85,028,759
Germany83,900,473
Thailand69,950,850
United Kingdom68,207,116
France65,426,179
Tanzania61,498,437
Italy60,367,477
South Africa60,041,994
Kenya54,985,698
Myanmar54,806,012
South Korea51,305,186
Colombia51,265,844
Uganda47,123,531
Spain46,745,216
Argentina45,605,826
Sudan44,909,353
Algeria44,616,624
Ukraine43,466,819
Iraq41,179,350
Afghanistan39,835,428
Canada38,067,903
Poland37,797,005
Morocco37,344,795
Saudi Arabia35,340,683
Uzbekistan33,935,763
Angola33,933,610
Peru33,359,418
Malaysia32,776,194
Mozambique32,163,047
Ghana31,732,129
Yemen30,490,640
Nepal29,674,920
Venezuela28,704,954
Madagascar28,427,328
Cameroon27,224,265
Ivory Coast27,053,629
North Korea25,887,041
Australia25,788,215
Niger25,130,817
Taiwan23,855,010
Sri Lanka21,497,310
Burkina Faso21,497,096
Mali20,855,735
Malawi19,647,684
Chile19,212,361
Romania19,127,774
Kazakhstan18,994,962
Zambia18,920,651
Syria18,275,702
Guatemala18,249,860
Ecuador17,888,475
Senegal17,196,301
Netherlands17,173,099
Cambodia16,946,438
Chad16,914,985
Somalia16,359,504
Zimbabwe15,092,171
Guinea13,497,244
Rwanda13,276,513
Benin12,451,040
Burundi12,255,433
Tunisia11,935,766
Bolivia11,832,940
Belgium11,632,326
Haiti11,541,685
South Sudan11,381,378
Cuba11,317,505
Dominican Republic10,953,703
Czech Republic10,724,555
Greece10,370,744
Jordan10,269,021
Azerbaijan10,223,342
Portugal10,167,925
Sweden10,160,169
Honduras10,062,991
United Arab Emirates9,991,089
Tajikistan9,749,627
Hungary9,634,164
Belarus9,442,862
Papua New Guinea9,119,010
Austria9,043,070
Israel8,789,774
Switzerland8,715,494
Serbia8,697,550
Togo8,478,250
Sierra Leone8,141,343
Hong Kong7,552,810
Laos7,379,358
Paraguay7,219,638
Libya6,958,532
Bulgaria6,896,663
Lebanon6,769,146
Nicaragua6,702,385
Kyrgyzstan6,628,356
El Salvador6,518,499
Turkmenistan6,117,924
Singapore5,896,686
Denmark5,813,298
Republic Of The Congo5,657,013
Finland5,548,360
Norway5,465,630
Slovakia5,460,721
Oman5,223,375
Palestine5,222,748
Liberia5,180,203
Costa Rica5,139,052
Ireland4,982,907
Central African Republic4,919,981
New Zealand4,860,643
Mauritania4,775,119
Panama4,381,579
Kuwait4,328,550
Croatia4,081,651
Moldova4,024,019
Georgia3,979,765
Eritrea3,601,467
Uruguay3,485,151
Mongolia3,329,289
Bosnia And Herzegovina3,263,466
Jamaica2,973,463
Armenia2,968,127
Qatar2,930,528
Albania2,872,933
Puerto Rico2,828,255
Lithuania2,689,862
Namibia2,587,344
Gambia2,486,945
Botswana2,397,241
Gabon2,278,825
Lesotho2,159,079
North Macedonia2,082,658
Slovenia2,078,724
Guinea Bissau2,015,494
Latvia1,866,942
Bahrain1,748,296
Equatorial Guinea1,449,896
Trinidad And Tobago1,403,375
Timor Leste1,343,873
Estonia1,325,185
Mauritius1,273,433
Cyprus1,215,584
Eswatini1,172,362
Djibouti1,002,187
Fiji902,906
Reunion901,686
Comoros888,451
Guyana790,326
Bhutan779,898
Solomon Islands703,996
Macau658,394
Luxembourg634,814
Montenegro628,053
Western Sahara611,875
Suriname591,800
Cape Verde561,898
Maldives543,617
Malta442,784
Brunei441,532
Belize404,914
Guadeloupe400,020
Bahamas396,913
Martinique374,745
Iceland343,353
Vanuatu314,464
French Guiana306,448
New Caledonia288,218
Barbados287,711
French Polynesia282,530
Mayotte279,515
Sao Tome And Principe223,368
Samoa200,149
Saint Lucia184,400
Guam170,179
Curacao164,798
Kiribati121,392
Micronesia116,254
Grenada113,021
Saint Vincent And The Grenadines111,263
Aruba107,204
Tonga106,760
United States Virgin Islands104,226
Seychelles98,908
Antigua And Barbuda98,731
Isle Of Man85,410
Andorra77,355
Dominica72,167
Cayman Islands66,497
Bermuda62,090
Marshall Islands59,610
Northern Mariana Islands57,917
Greenland56,877
American Samoa55,100
Saint Kitts And Nevis53,544
Faroe Islands49,049
Sint Maarten43,412
Monaco39,511
Saint Martin39,234
Turks And Caicos Islands39,231
Liechtenstein38,250
San Marino34,017
Gibraltar33,698
British Virgin Islands30,421
Palau18,169
Cook Islands17,565
Anguilla15,117
Tuvalu11,931
Wallis And Futuna11,094
Nauru10,876
Saint Barthelemy9,907
Saint Pierre And Miquelon5,766
Montserrat4,977
Falkland Islands3,533
Niue1,619
Tokelau1,373
Vatican City800

CAPE Ratio by Country