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3 min readBy Dominic Roe · Data Engineer & Business Intelligence Developer

The Cheapest and Most Expensive Stock Markets — August 2026

Where global stock-market valuations stand in August 2026: the cheapest and most expensive major markets ranked by an overall value score blending CAPE, P/E, P/B, P/S and dividend yield. China screens cheapest; the United States the most expensive.

Every month we rank the world's major stock markets from cheapest to most expensive. The ranking uses a single value score out of 10 (10 = cheapest), blending five measures — the cyclically-adjusted CAPE ratio, price-to-earnings, price-to-book, price-to-sales and the dividend yield — so no single metric dominates. Here is where things stand in August 2026.

The cheapest markets right now

On this blend, China screens as the best value this month, with a score of 9.0/10. The five cheapest:

Market Value score /10 CAPE P/E Div yield
China 9.0 15.2 8.8 2.14%
Italy 8.5 23.1 15.0 3.16%
United Kingdom 7.7 21.5 17.6 3.27%
Germany 7.5 23.4 17.5 2.01%
France 7.2 24.1 18.5 2.90%

The most expensive markets

At the other end, the United States is the most expensive. The five priciest:

Market Value score /10 CAPE P/E Div yield
United States 1.5 40.5 26.9 1.09%
Taiwan 1.7 42.1 30.2 0.92%
Switzerland 2.8 29.3 24.5 1.74%
India 3.6 31.8 22.3
South Korea 4.0 36.7 20.0 1.01%

The whole world, and the US

The whole investable market (Vanguard Total World) trades at a P/E of about 22.6 and a CAPE near 28.8 — historically expensive, in the 97th percentile of its own history, for an overall value score of 3.6/10 against the individual markets. The United States remains the most expensive major market — a CAPE of around 40.5 and a value score of just 1.5/10.

How the score works

For each measure, every market is ranked against the others — a low P/E, P/B, P/S or CAPE counts as cheap, and a high dividend yield counts as cheap too — and those ranks are averaged, equal-weighted, onto a 1–10 scale where 10 is the cheapest. It is relative: cheapest versus these peers, today — not an absolute verdict or fair-value estimate.

Two honest caveats. Cheap markets are often cheap for a reason — slower growth, more cyclical earnings, or a heavy weighting of low-multiple sectors like banks and energy. And every country's CAPE except the US is a clearly-labelled estimate built from free data. Treat the score as a starting point for research, not a recommendation.

See the live ranking

These figures move with the market. For the full, sortable table — every market across CAPE, P/E, P/B, P/S, the dividend yield and the value score, each colour-coded cheap to dear — see stock market valuations by country, updated continuously.

Information only — not investment advice. Figures as of the latest data refresh in August 2026.

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