MSCI World Median P/E At 93-Month HighDecember 11, 2014
The median P/E for a stock in the MSCI World Index at the end of November was 19.79x. This is slightly above the P/E at the end of last year (19.70x) and it is at the highest level since January 2007.
There is slight range of values when we break it out by region. The median P/E in MSCI Pacific is 18.82x. The median P/E in MSCI Europe is slightly higher at 19.14x. Finally, the median P/E for the MSCI North America is 21.2x, which is a 117-month high.
When we break it out by sector, the range of values widens significantly. Five out of the ten MSCI World sectors have a median P/E over 20x and that doesn’t include the materials sector which as a median P/E of 19.49x. The sector with the highest median P/E is health care, which is also by far the best performing sector YTD. The health care median P/E is 27.5x. The sector with the lowest median P/E is unsurprisingly the energy sector. The energy sector median P/E is about half of what the median P/E in health care is. The energy sector median P/E stands at 14.86x. Charts of the 10 sectors are below.