Data Dashboard Morningstar Global Valuation Lens Valuations remained high in both developed and emerging markets at the end of October. A number traded at double-digit premiums, with Taiwan and Finland the priciest. At a 6.7% premium to fair value, the U.S. was relatively moderately priced. Greater Europe 7.8% U.S. 6.7% < -5.0% -4.9 to -0.1% 0.0% Fairly Valued Undervalued Greater Asia 8.0% > 5.0% 0.1 to 4.9% Overvalued Price/Fair Value by Country 10/31/2017 Finland 16.6% Norway 10.7% Canada 7.8% U.K. 9.9% Sweden 7.4% France 9.2% Germany 7.6% Spain 1.0% United States 6.7% China 9.7% Pakistan -1.5% Iraq -6.0% Mexico 6.2% Russia 1.7% Qatar -4.5% Japan 6.2% South Korea 8.9% Taiwan 15.6% Nigeria 13.3% Colombia 7.0% Brazil 9.9% India 9.6% New Zealand 6.4% South Africa 9.1% Australia 14.5% Chile 9.0% Argentina 9.7% Under- and Overvalued Countries 10/31/2017 Undervalued P/FV Overvalued Spain Russia Bulgaria Israel Italy Saudi Arabia Singapore Hong Kong Bangladesh United Arab Emirates Philippines Mexico Romania Thailand Japan New Zealand Greece United States Switzerland Colombia Malaysia Sweden Germany Canada Belgium Portugal Vietnam Peru South Korea Chile Egypt South Africa Turkey France India Netherlands China Argentina Brazil United Kingdom Austria Poland Indonesia Norway Denmark Nigeria Australia Taiwan Finland Iraq Qatar Pakistan +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 December/January 2018