Australia’s price/earnings (P/E) ratio of 35.3 ranks it among the top ten most expensive global share markets.
The highest ratios are concentrated in Europe and Asia where the average multiple is now around 36.5. The next most expensive market in Europe is the Netherlands with a P/E of 59.0 and is closely followed by Norway, Ireland and Finland.
In Asia the average P/E is 25.4. Hong Kong is trading on a multiple of 35.3 which is roughly double the ratio in mainland China.
World Price/Earnings Ratios |
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|---|---|---|
| Rank | Market | P/E Ratio |
| 1 | Netherlands | 59.0 |
| 2 | Norway | 47.9 |
| 3 | Ireland | 41.7 |
| 4 | Finland | 39.2 |
| 5 | Singapore | 39.0 |
| 6 | Saudi Arabia | 38.7 |
| 7 | United States | 37.9 |
| 8 | United Kingdom | 35.3 |
| 9 | Australia | 35.3 |
| 10 | Hong Kong | 35.3 |
| 11 | France | 35.2 |
| 12 | New Zealand | 32.0 |
| 13 | Denmark | 31.0 |
| 14 | India | 30.7 |
| 15 | Belgium | 30.4 |
| 16 | Malaysia | 29.9 |
| 17 | Portugal | 29.7 |
| 18 | Philippines | 29.2 |
| 19 | Chile | 27.7 |
| 20 | South Africa | 26.1 |
| 21 | Mexico | 26.0 |
| 22 | Kuwait | 24.9 |
| 23 | Average | 24.2 |
| 24 | Thailand | 24.0 |
| 25 | Canada | 23.5 |
| 26 | Brazil | 23.0 |
| 27 | Taiwan | 22.5 |
| 29 | Germany | 22.5 |
| 30 | Switzerland | 22.1 |
| 31 | Italy | 21.8 |
| 32 | Czech Republic | 20.9 |
| 33 | Poland | 20.7 |
| 34 | South Korea | 19.8 |
| 35 | Indonesia | 19.7 |
| 36 | Sweden | 19.2 |
| 37 | Columbia | 18.3 |
| 38 | Qatar | 17.2 |
| 39 | China | 17.1 |
| 40 | Japan | 16.9 |
| 41 | UAE | 16.9 |
| 42 | Austria | 15.3 |
| 43 | Hungary | 15.3 |
| 44 | Israel | 14.6 |
| 45 | Romania | 10.6 |
| 46 | Spain | 10.4 |
| 47 | Greece | 10.2 |
| 48 | Russia | 10.1 |
| 49 | Turkey | 9.1 |
| 50 | Egypt | 7.5 |
| Source: FT, Wren Advisers. The figures were compiled at the end of September 2021 and are based on historical rather than forward earnings estimates. | ||