Market Indices PE Ratio for Major Stock Exchange globally
- US: Dow Jones Industrial, S&P500, NASDAQ, Russell 2000
- Europe: FTSE100, CAC40, DAX
- Asia: KLCI, STI, HangSeng, ASX200, CSI 300, JCI, SET, KOSPI, NIKKEI 225, SENSEX, TWSE, NZX50, PSEi
- Best Performer: India’s SENSEX up for 5.23% with PE Ratio of 20.10
- Valuation of Global Stock Market is NOT cheap base on PE Ratio
- PE = Price Per Earning
See May 2016 Global Stock Market PE Ratio here.
The cyclically adjusted price-to-earnings ratio, commonly known as CAPE, Shiller P/E, or P/E 10 ratio, is a valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years of earnings (moving average), adjusted for inflation. As such, it is principally used to assess likely future returns from equities over timescales of 10 to 20 years, with higher than average CAPE values implying lower than average long-term annual average returns. It is not intended as an indicator of impending market crashes, although high CAPE values have been associated with such events.