Which Stock Market is the Best Value?

How do the global stock markets measure up against one another? Using Morningstar's quantitative research we reveal which is the best value stock market in the world

Tim Strauts 18 November, 2014 | 1:18PM
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Tim Strauts: In today's chart we are going to look at market valuations across the globe through the realms of Morningstar's quantitative price to fair value metric.

Looking at the chart the North America region is generally fairly valued. With the U.S. being 1.3% overvalued and Canada and Mexico right around fairly valued. Moving to South America, Brazil is 8% undervalued which is one of the most undervalued countries in the world.

The worsening economic outlook in Europe has caused many European countries to move from overvalued last quarter to undervalued today. For example Germany which was 5.1% overvalued last quarter now is 0.8% undervalued.

Moving over to Russia. You can see that Russia remains the most undervalued country due to the ongoing conflict in the Ukraine, which has scared off investors.

Lastly Asia is generally attractively valued with only India being overvalued by 3.2%.

Overall world valuations are more attractive than they were last quarter. With the best opportunities in Asia and emerging markets.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Tim Strauts