Median DM Stock Valuations Pushing ’00, ’07 Highs by All Common Metrics

Last week we highlighted that low valuations are hard to come by by showing just how few stocks were trading at discount levels. This week we’ll take a slightly different tack and show the absolute level of valuations for the median stock in each the developed and emerging markets. For each group of stocks we show the median Price/Sales, Price/Earnings, Price/Cash Flow and Price/Book value. Some general observations are as follows:

  • The median DM stock is more expensive than the median EM stock by each valuation metric
  • DM valuations are in the range of the prior valuation peaks seen in 2007 and 2000
  • EM stocks (for which we have less history) are still somewhat below their 2007 peak, but are nonetheless well above their 2009 lows.

Developed Market Median Valuations:

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Emerging Market Median Valuations:

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