8/18/2019 CAPE - Relative Valuation US vs. Europe and Developed Markets

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Contact:Norbert KeimlingHead of Research

CAPE: Relative Valuation US vs. Europe and Developed Markets

Sources: StarCapital as of 31/07/2015.

75%

100%

125%

150%

175%

200%

225%

250%

Dez. 79 Dez. 83 Dez. 87 Dez. 91 Dez. 95 Dez. 99 Dez. 03 Dez. 07 Dez. 11 Dez. 15 Dez.

US CAPE relative to Europe CAPE

Avg. Overvaluation US vs. Europe (34%)US CAPE relative to Developed Markets CAPE

Avg. Overvaluation US vs. Developed Markets (8%)

US Valuation vs. RegionsUS vs. Europe: 25.7 vs. 16.4 (Overvaluation 57%)(Avg. Overvaluation vs. Europe since 1979: 34%)US vs. DevMkts: 25.7 vs. 21.7 (Overvalutation 19%)(Avg. Overvaluation vs. DevMrkts since 1979: 8%)

US Valuation vs. local HistoryCAPE: 25.7 vs. 16.5 (Overvaluation 56%)Price-Book: 2.9 vs. 2.1 (Overvaluation 38%)TobinsQ: 1.1 vs. 0.7 (Overvaluation 60%)

CAPE US / EuropeAvg. 34% since ´79

RelativeOvervaluation of57% near ATH

CAPE US / DevMktsalso near ATH