Morningstar Magazine - February/March 2018 - 74

Data Dashboard

Morningstar Global Valuation Lens
Valuations around the globe remained high at the end of 2017, with many developed and emerging
markets trading at significant premiums to fair value. Argentina and Australia were the most expensive,
while Spain traded at a rare discount.
Greater Asia 7.9%
Greater Europe 5.7%

< -5.0%

-4.9 to -0.1%

0.0%

U.S. 8.2%

> 5.0%

0.1 to 4.9%

Fairly Valued

Undervalued

Overvalued

Price/Fair Value by Country 12/31/2017
Finland 14.5%
Norway 13.8%
Canada 6.0%

U.K. 13.3%

Sweden 4.9%

France 5.4%

Germany 4.2%

Spain -2.8%

United States 8.2%
Mexico 5.4%

Saudi Arabia 8.1%

Russia 8.6%
China 10.8%
Pakistan 4.2%

Qatar -1.2%

Japan 7.5%
South Korea 8.3%
Taiwan 12.7%

Colombia 4.6%
Brazil 11.7%

India 14.7%
New Zealand 7.9%

South Africa 8.9%

Australia 18.0%

Chile 5.1%
Argentina 19.3%

Under- and Overvalued Countries 12/31/2017
Undervalued

P/FV

Overvalued

Qatar
Singapore
Israel
Hong Kong
Germany
Pakistan
Greece
Colombia
Bulgaria
Sweden
Chile
Mexico
France
Canada
Belgium
Netherlands
Switzerland
Turkey
Japan
Portugal
Malaysia
New Zealand
Saudi Arabia
United States
Philippines
South Korea
Russia
Romania
Thailand
South Africa
Poland
China
Denmark
Peru
Brazil
Taiwan
United Kingdom
Norway
Indonesia
Finland
India
Vietnam
Australia
Argentina

Spain

+20.0%

A percentage of 0.0 connotes fairly valued

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 February/March 2018



Table of Contents for the Digital Edition of Morningstar Magazine - February/March 2018

Contents
Morningstar Magazine - February/March 2018 - Cover1
Morningstar Magazine - February/March 2018 - Cover2
Morningstar Magazine - February/March 2018 - 1
Morningstar Magazine - February/March 2018 - 2
Morningstar Magazine - February/March 2018 - Contents
Morningstar Magazine - February/March 2018 - 4
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