P/E Ratio of the US Market Is Still Very High, Even Despite Others Have Better EPS Over Time

Peter Smith

European and Asian markets offer better EPS over time, but investors stick with the US.

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Contents

The US Market Still Trades at a Premium
What Is P/E Ratio?

The US Market Still Trades at a Premium

Apparently, investors prefer the relative stability of the US market to large potential returns from European and Asian exchanges.

According to Michael A. Gayed, the US stocks trade at a premium relative to the rest of the markets, even though they offer higher earnings per share (EPS).

Trading Strategy

Source: The Tradable

S&P 500 (SPX) Index Corrected by 10% Despite the Absence of Investors' Fear and with No Put/Call Ratio Spikes

The index continues to fall despite the record low put/call options ratio, which is abnormal for a correcting market.

What Is P/E Ratio?

The analysis is carried out based on the P/E indicator. The Price-to-earnings ratio is the measurement for valuing a company. It compares the current share price with its per-share earnings. The higher the ratio, the longer it will take for the investment in the company to pay off. The indicator is suitable for comparing companies, industries, or even entire stock markets.

#Chart #Stocks #P/E #Fundamental

Peter Smith E-mail

Pete is an expert in content creation with a passion for the global economy and equities market.