Data Dashboard Morningstar Global Valuation Lens Valuations in Australia and Finland continue to rise this year, but overall, global valuations are on a downward trend. Italy dropped significantly amid political turnoil, and Brazil's stock market is now undervalued. Greater Asia -3.8% < -5.0% Greater Europe 8.7% U.S. -2.0% -4.9 to -0.1% 0.0% > 5.0% 0.1 to 4.9% Fairly Valued Undervalued Overvalued Price/Fair Value by Country 06/30/2018 Finland 14.9% Norway 9.7% Canada 1.4% U.K. 2.8% France 6.4% Italy -4.2% United States 2.0% Mexico -1.2% Russia 6.0% Sweden 1.9% China -5.1% Poland -9.5% Greece 0.8% Saudi Arabia 4.8% Pakistan 1.8% Qatar 5.6% Japan -1.7% South Korea -5.3% Taiwan 3.1% Colombia 7.7% Brazil -3.7% India 5.6% New Zealand 4.6% South Africa -1.1% Australia 17.7% Chile 0.5% Argentina -1.3% Under- and Overvalued Countries 06/30/2018 Undervalued P/FV Overvalued A percentage of 0.0 connotes fairly valued Vietnam Belgium Chile Greece Indonesia Canada Pakistan Sweden United States United Arab Emirates Malaysia United Kingdom Taiwan Nigeria Portugal Denmark New Zealand Saudi Arabia Romania Peru Qatar Russia India Egypt France Colombia Norway Switzerland Finland Australia Poland Turkey Hong Kong Bangladesh South Korea China Germany Philippines Italy Singapore Bulgaria Brazil Japan Argentina Mexico South Africa Austria Israel Thailand Netherlands +20.0% 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 2018