Capital Markets: Observations & Insights

Global Valuation

• Emerging markets continue to trade at a historically large discount to developed markets based on NTM P/E

S&P 500

MSCI Europe

MSCI Japan

MSCI EM

25

23

21

19

17

15

13

P/E (NTM)

11

9

7

5

Jul-03

Jul-04

Jul-05

Jul-06

Jul-07

Jul-08

Jul-09

Jul-10

Jul-11

Jul-12

Jul-13

Jul-14

Jul-15

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Source: FactSet

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