How Much Cheaper Are International Stocks Than U.S. Stocks?

Right now, international stocks are a huge bargain compared to U.S. stocks. Apollo Global Management estimates that the price-to-earnings (P/E) ratio, which measures a stock's price relative to the company's earnings, of U.S. stocks is 40% higher than the P/E ratio for the rest of the world. So U.S. stocks are 40% more expensive than international stocks.The two groups of equities were priced about the same up until about 2015, but the surge in valuations of U.S. tech stocks (think Magnificent Seven stocks) has sent U.S. valuations much higher in recent years. Right now, the average forward P/E ratio for U.S. stocks is about 28, while that ratio lingers nearer to 19 for non-U.S. international stocks.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool