Data Dashboard Morningstar Global Valuation Lens Valuations remained high around the globe at the end of June. Australia, Finland, and Taiwan were all trading at double-digit premiums to fair value, and discounts were scarce. Trading at a 3.5% premium, the U.S. was one of the more moderately priced developed markets. Greater Europe 3.6% U.S. 3.5% < -5.0% -4.9 to -0.1% 0.0% Greater Asia 5.1% > 5.0% 0.1 to 4.9% Fairly Valued Undervalued Overvalued Price/Fair Value by Country 06/30/2017 Finland 13.3% Norway 3.9% Canada 4.1% U.K. 6.6% Sweden 6.6% France 4.8% Germany 2.0% Russia -2.6% China 6.0% Japan 6.2% Spain 2.9% United States 3.5% Hong Kong 0.1% South Korea 5.1% Mexico 0.6% Taiwan 11.9% Nigeria 5.1% Colombia 3.4% Brazil 3.1% India 2.9% New Zealand 7.6% South Africa 3.3% Australia 10.1% Chile 9.3% Argentina 5.6% Under- and Overvalued Countries 06/30/2017 Undervalued Overvalued +20.0 % Hong Kong Mexico Pakistan Netherlands Germany United Arab Emirates Portugal Philippines Switzerland Spain India Brazil South Africa Colombia United States Israel Norway Singapore Canada Saudi Arabia France South Korea Vietnam Nigeria Argentina China Japan Denmark Sweden United Kingdom Turkey Belgium Thailand Austria Bangladesh New Zealand Malaysia Bulgaria Romania Peru Poland Chile Greece Australia Taiwan Finland Egypt Iraq Russia Italy Qatar A percentage of 0.0 connotes fairly valued P/FV 0.0 -20.0 Country fair-value ratios are derived from P/FV ratios on underlying stocks in those nations, generated primarily from estimates by Morningstar analysts, or, when an analyst estimate isn't available, a fair value generated using Morningstar's quantitative equity ratings. The data is then adjusted to account for market capitalization. Some countries are omitted due to outliers in the data: less than a $10,000 three-month median-dollar-trading volume or fewer than 20 total stocks that clear the screens. Stocks that trade for 50 cents or less a share are also removed. Uncertainty attempts to measure the confidence Morningstar analysts have in a company's ability to generate future cash flows. 74 Morningstar August/September 2017