Global Equity Valuation Dispersion: Evidence from P/E Benchmarks, Percentile Positioning, and Trend Margins

Abstract

This study provides a descriptive cross-country assessment of equity market valuation dispersion using price-to-earnings (P/E) indicators combined with historical benchmarks, percentile-based positioning, and trend context. Rather than treating P/E ratios as return-predictive signals, the study adopts a diagnostic orientation that organizes platform-reported valuation information into comparable market profiles. Country-level indicators were obtained from WorldPEratio.com (as-of [insert extraction date]), including current trailing P/E ratios, historical average P/E benchmarks (5-year, 10-year, and 20-year), relative valuation percentiles, and Trend Margin (TM, %) defined as the deviation from the 200-day simple moving average. The analysis (a) classifies markets using the platform’s valuation labels, (b) compares current valuations to historical averages to identify benchmark-relative elevation or discount, (c) identifies valuation extremes using percentile positioning, and (d) maps valuation tiers to magnitude-based TM regimes to describe valuation–trend configurations. Results show substantial dispersion and asymmetry across markets: elevated valuation positioning is concentrated in a subset of markets, while deep benchmark-relative undervaluation is less common. Valuation conclusions also vary by benchmark horizon, indicating sensitivity to the chosen historical reference window. Finally, valuation and trend do not align uniformly: some discounted markets exhibit strong positive trend regimes, while a small number of low-valuation cases remain below long-run trend. The study contributes an audit-traceable, layered descriptive structure for cross-country valuation comparison while avoiding predictive claims and investment recommendations.