CAPE Ratio by Country 2022

map placeholder

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 2022

Country 2022 Population
China1,425,887,337
India1,417,173,173
United States338,289,857
Indonesia275,501,339
Pakistan235,824,862
Nigeria218,541,212
Brazil215,313,498
Bangladesh171,186,372
Russia144,713,314
Mexico127,504,125
Japan123,951,692
Ethiopia123,379,924
Philippines115,559,009
Egypt110,990,103
DR Congo99,010,212
Vietnam98,186,856
Iran88,550,570
Turkey85,341,241
Germany83,369,843
Thailand71,697,030
United Kingdom67,508,936
Tanzania65,497,748
France64,626,628
South Africa59,893,885
Italy59,037,474
Myanmar54,179,306
Kenya54,027,487
Colombia51,874,024
South Korea51,815,810
Spain47,558,630
Uganda47,249,585
Sudan46,874,204
Argentina45,510,318
Algeria44,903,225
Iraq44,496,122
Afghanistan41,128,771
Poland39,857,145
Ukraine39,701,739
Canada38,454,327
Morocco37,457,971
Saudi Arabia36,408,820
Angola35,588,987
Uzbekistan34,627,652
Peru34,049,588
Malaysia33,938,221
Yemen33,696,614
Ghana33,475,870
Mozambique32,969,518
Nepal30,547,580
Madagascar29,611,714
Venezuela28,301,696
Ivory Coast28,160,542
Cameroon27,914,536
Niger26,207,977
Australia26,177,413
North Korea26,069,416
Taiwan23,893,394
Burkina Faso22,673,762
Mali22,593,590
Syria22,125,249
Sri Lanka21,832,143
Malawi20,405,317
Zambia20,017,675
Romania19,659,267
Chile19,603,733
Kazakhstan19,397,998
Ecuador18,001,000
Guatemala17,843,908
Chad17,723,315
Somalia17,597,511
Netherlands17,564,014
Senegal17,316,449
Cambodia16,767,842
Zimbabwe16,320,537
Guinea13,859,341
Rwanda13,776,698
Benin13,352,864
Burundi12,889,576
Tunisia12,356,117
Bolivia12,224,110
Belgium11,655,930
Haiti11,584,996
Jordan11,285,869
Dominican Republic11,228,821
Cuba11,212,191
South Sudan10,913,164
Sweden10,549,347
Czech Republic10,493,986
Honduras10,432,860
Greece10,384,971
Azerbaijan10,358,074
Portugal10,270,865
Papua New Guinea10,142,619
Hungary9,967,308
Tajikistan9,952,787
Belarus9,534,954
United Arab Emirates9,441,129
Israel9,038,309
Austria8,939,617
Togo8,848,699
Switzerland8,740,472
Sierra Leone8,605,718
Laos7,529,475
Hong Kong7,488,865
Serbia7,221,365
Nicaragua6,948,392
Libya6,812,341
Bulgaria6,781,953
Paraguay6,780,744
Kyrgyzstan6,630,623
Turkmenistan6,430,770
El Salvador6,336,392
Singapore5,975,689
Republic of the Congo5,970,424
Denmark5,882,261
Slovakia5,643,453
Central African Republic5,579,144
Finland5,540,745
Lebanon5,489,739
Norway5,434,319
Liberia5,302,681
Palestine5,250,072
New Zealand5,185,288
Costa Rica5,180,829
Ireland5,023,109
Mauritania4,736,139
Oman4,576,298
Panama4,408,581
Kuwait4,268,873
Croatia4,030,358
Georgia3,744,385
Eritrea3,684,032
Uruguay3,422,794
Mongolia3,398,366
Moldova3,272,996
Puerto Rico3,252,407
Bosnia And Herzegovina3,233,526
Albania2,842,321
Jamaica2,827,377
Armenia2,780,469
Lithuania2,750,055
Gambia2,705,992
Qatar2,695,122
Botswana2,630,296
Namibia2,567,012
Gabon2,388,992
Lesotho2,305,825
Slovenia2,119,844
Guinea Bissau2,105,566
North Macedonia2,093,599
Latvia1,850,651
Equatorial Guinea1,674,908
Trinidad And Tobago1,531,044
Bahrain1,472,233
Timor Leste1,341,296
Estonia1,326,062
Mauritius1,299,469
Cyprus1,251,488
Eswatini1,201,670
Djibouti1,120,849
Reunion974,052
Fiji929,766
Comoros836,774
Guyana808,726
Bhutan782,455
Solomon Islands724,273
Macau695,168
Luxembourg647,599
Montenegro627,082
Suriname618,040
Cape Verde593,149
Western Sahara575,986
Malta533,286
Maldives523,787
Brunei449,002
Bahamas409,984
Belize405,272
Guadeloupe395,752
Iceland372,899
Martinique367,507
Vanuatu326,740
Mayotte326,101
French Polynesia306,279
French Guiana304,557
New Caledonia289,950
Barbados281,635
Sao Tome And Principe227,380
Samoa222,382
Curacao191,163
Saint Lucia179,857
Guam171,774
Kiribati131,232
Grenada125,438
Micronesia114,164
Jersey110,778
Seychelles107,118
Tonga106,858
Aruba106,445
Saint Vincent And the Grenadines103,948
United States Virgin Islands99,465
Antigua And Barbuda93,763
Isle of Man84,519
Andorra79,824
Dominica72,737
Cayman Islands68,706
Bermuda64,184
Guernsey63,301
Greenland56,466
Faroe Islands53,090
Northern Mariana Islands49,551
Saint Kitts And Nevis47,657
Turks And Caicos Islands45,703
American Samoa44,273
Sint Maarten44,175
Marshall Islands41,569
Liechtenstein39,327
Monaco36,469
San Marino33,660
Gibraltar32,649
Saint Martin31,791
British Virgin Islands31,305
Palau18,055
Cook Islands17,011
Anguilla15,857
Nauru12,668
Wallis And Futuna11,572
Tuvalu11,312
Saint Barthelemy10,967
Saint Pierre And Miquelon5,862
Montserrat4,390
Falkland Islands3,780
Niue1,934
Tokelau1,871
Vatican City510

CAPE Ratio by Country 2022

Sources