Revisiting a chart from November of 2006 we show below the change in selected world equity indices versus the change in P/E ratio over the same time. Changes are calculated beginning on March 12, 2003 (the start of the current bull market of the MSCI World Market Index) through the present. In most cases the P/E ratios have continued to decrease. (Changes in P/E are indicated by vertical lines in the chart. The top of the line is the P/E in 2003, while the circle shows the current level.)
We continue to view decreasing P/E coupled with increasing prices as a very positive sign for the value of world markets in general. India has shown the largest increase in P/E, while China has remained atop the list. We found it interesting that despite large gains in Russia, South Africa and Mexico, their P/E ratios remain relatively low.
Each country's major index is also listed with its iShares ETF, or another ETF if iShares does not provide one.