MSCI World Median P/E At 93-Month High

December 11, 2014
By Knowledge Leaders Team in Uncategorized

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.

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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.

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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.

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