The Cyclically Adjusted Price to Earnings Ratio (CAPE) for US stocks is around 27 compared to its historical average around 16. Meanwhile, CAPE is well below its historical average in many countries such as Greece, Austria, and Japan.
While valuation should not be used in isolation, it is important to note that value opportunities appear more attractive as technical breakouts occur abroad. For example, it took about 20 years for Japan to work off extreme valuation from its bubble era in the late 1980s. The current pull-back in international markets should be assessed for opportunities to buy.
I compiled data featured on WSJ of selected markets that appear undervalued, overvalued, and near its historical average based on the CAPE measure.