Chapter 11 Market evaluation

11.1 Market capitalization¹²

Figure 11.1: Market capitalization of listed domestic companies across 75 major markets (approximate proportions of the global market capitalization are shown on the right side of each bar)

11.2 GDP and market capitalization¹³

Figure 11.2: Market capitalization relative to GDP across 75 major countries

Figure 11.3: Same data as in Figure 11.2

11.3 GDP and Buffett indicator¹⁴

Figure 11.4: GDP and Buffett indicator across 26 major countries

11.4 Market valuation¹⁵

Figure 11.5: Market valuation for 15 major countries

11.5 Projected annual return¹⁶

Figure 11.6: Projected future annual returns of the world’s 18 largest stock markets, calculated using (1) future business growth estimates, (2) dividends, and (3) change in market valuation

11.6 U.S. stock market valuation

Figure 11.7: Wilshire 5000 Full Cap Price Index/GDP

Figure 11.8: Cyclically adjusted P/E (CAPE) ratio for S&P 500

Figure 11.9: S&P 500 P/E ratio, based on trailing 12 months “as reported” earnings

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12. Data are from World Bank and Wikipedia. Most recent 3 years for which top 3 countries' data are available are shown.↩︎

13. Data are from World Bank and Wikipedia. Most recent 3 years for which top 3 countries' data are available are shown.↩︎

14. Source data and details can be found at Gurufocus.com.↩︎

15. Source data and details can be found at Gurufocus.com.↩︎

16. Source data and details can be found at Gurufocus.com.↩︎