World Equity Index Valuations Tables
Comment of the Day

September 06 2010

Commentary by Eoin Treacy

World Equity Index Valuations Tables

Eoin Treacy's view Here is the monthly list of 99 global indices ranked in descending order by dividend yield, then in ascending order by P/E, Price / Book and Price / Cash Flow.

High yielding equities have gained considerable attention over the last few months as government bond yields priced in increasingly dismal economic forecasts. However, we are now at a situation where the Euro Stoxx 50 yields 4.08% versus 2.35% for the German 10-year bund. This might be reasonable if one truly believed equities prices were going to collapse however the chart action tells a different story. The Euro Stoxx 50 has been ranging above 2500 since July 2009 in what has the appearance of a first step above the base. It is currently rallying from the lower side and a sustained move below 2500 would be required to question scope for continued higher to lateral ranging. Bund yields posted an upside weekly key reversal last week, capping the decline for at least the short-term and potentially marking a medium-term bottom..

(Please note: All data quoted above originates in Bloomberg. We realise that some of the data displayed is inaccurate for some indices, particularly where ADRs are included. However, I have endeavoured to remove those indices which were most problematic. We continue to publish these tables because the data is generally accurate and going forward we will continue to weed-out the less reliable data sets as subscribers highlight them for us. I have also deleted the FTSE AIM Index from the list because it does not seem to have very reliable figures. The P/Es quoted by Bloomberg are exclusively based on operating earnings.)

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