Data Dashboard Morningstar Global Valuation Lens Most markets are trading at premiums to fair value. European markets are on the high end, but most emerging markets are expensive, too. Russia, now trading at a discount, is a notable exception. Greater Asia 5.1% < -5.0% -4.9 to -0.1% 0.0% 0.1 to 4.9% Fairly Valued Undervalued U.S. 5.5% Greater Europe 7.4% > 5.0% Overvalued Price/Fair Value by Country 04/30/2017 Finland 23.8% Norway 8.3% Canada 8.0% U.K. 1.5% Sweden 13.0% France 10.1% Germany 6.6% Russia -1.7% China 6.4% Spain 6.9% United States 5.5% Hong Kong 0.6% Japan 6.7% South Korea 1.9% Mexico 1.4% Nigeria 0.5% Colombia 4.8% Brazil 4.1% Indonesia 6.9% India 4.9% New Zealand 4.0% South Africa 3.7% Australia 12.0% Chile 8.6% Argentina 6.6% Under- and Overvalued Countries 04/30/2017 Undervalued Overvalued +25.0 % Nigeria Hong Kong Philippines Mexico United Kingdom South Korea Vietnam Turkey South Africa Singapore Ireland New Zealand United Arab Emirates Brazil Saudi Arabia Pakistan Colombia India Qatar United States Thailand Netherlands Israel China Argentina Germany Japan Spain Indonesia Portugal Iraq Italy Canada Norway Egypt Malaysia Bangladesh Chile Poland Taiwan Greece France Bulgaria Austria Belgium Australia Denmark Peru Sweden Romania Finland Russia Switzerland A percentage of 0.0 connotes fairly valued P/FV 0.0 -25.0 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. 106 Morningstar June/July 2017