France CAPE Ratio
Current France CAPE
As of August 2026 · ratio
Source: EWQ — iShares MSCI France ETF
Rough estimate. This single-country CAPE is approximated by rolling the EWQ ETF price from a recent anchor — free data has no per-country 10-year earnings — so treat it as a directional gauge, not a measured CAPE. It is bounded and is not used in the headline Global CAPE. See the methodology.
By Dominic Roe · Data Engineer & Business Intelligence Developer Updated August 2026
Is France cheap right now?
✓ Real · EWQOn 4 of 4 trailing multiples, France equities are priced below the all-world index (VT). These are current, fund-reported figures — not the estimated CAPE series charted below.
| Measure | France | World |
|---|---|---|
| P/E | 18.4 | 22.6 |
| P/B | 2.08 | 3.32 |
| P/S | 1.50 | 2.55 |
| Dividend yield | 2.83% | 1.59% |
| ROE (quality) | 11.3% | 14.7% |
Green = cheaper than the world index on that measure. ROE is shown as context, not cheapness: a lower return on equity means part of a cheap multiple may be deserved rather than a bargain.
Against its own history, France's estimated CAPE of 25.8 sits at the 76th percentile — historically expensive for France — above most of its own past readings.
Multiples as of August 2026.
- Historical average
- 23.9
- 365 months
- Historical median
- 22.6
- Percentile rank
- 76th percentile
- vs full history
- All-time range
- 13.9 – 44.0
- Last updated
- August 2026
- since April 1996
Understanding this metric
What is it?
The Cyclically Adjusted Price-to-Earnings ratio (CAPE), also called the Shiller P/E or PE10, measures how expensive France equities are relative to their inflation-adjusted earnings over the prior ten years. By averaging a decade of real earnings it smooths out the booms and busts of the business cycle, giving a steadier read on valuation than a one-year P/E.
How is it calculated?
CAPE is computed by dividing the real (inflation-adjusted) price of the France equity market by the average of its real earnings over the trailing ten years. Both price and earnings are expressed in today's currency using a consumer price index, so a CAPE of 25 means investors are paying 25 times a smoothed, inflation-adjusted measure of annual earnings.
Historical interpretation
Historically a high CAPE has been associated with lower subsequent long-run real returns, and a low CAPE with higher returns. It is a valuation gauge, not a market-timing signal: rich valuations can persist or grow richer for years. Compare today's reading to the metric's own history — its average, median and percentile rank — rather than to a single "fair value" number. France is the euro zone's second-largest market and an unusual blend, which makes it a good case for reading CAPE beside the live trailing multiples above. The index pairs world-class premium names — luxury houses, aerospace and cosmetics — with lower-multiple banks, energy and industrials, and the mix still nets to a discount to the all-world index on price-to-earnings, price-to-book and price-to-sales, with a higher dividend yield. The offset is a lower return on equity than the United States and heavy exposure to a few large luxury stocks whose fortunes track global — especially Chinese — demand. The most useful read combines the CAPE percentile (how France is priced against its OWN history) with those cross-market multiples before concluding the market is cheap.
Limitations
CAPE has well-known limitations. Accounting standards, payout policies, profit margins, interest rates and sector composition all change over decades, which can shift the "normal" range upward or downward. The ten-year window still includes unusual periods (such as a deep recession) that distort earnings. CAPE says little about the next year and should be combined with other metrics rather than used in isolation. This series is an ESTIMATE, not a measured CAPE. Free data does not include long-history, per-country 10-year real earnings, so it is built by anchoring a recent CAPE level and rolling it through history using the inflation-adjusted price of the iShares MSCI France ETF (EWQ) with a steady real-earnings trend removed. History only extends as far back as the country ETF (typically the late 1990s/2000s). Treat it as a directional valuation gauge. See the methodology documentation for sources and assumptions.
Frequently asked questions
Is the French stock market cheap right now?
On the fund-reported multiples above, French equities trade below the all-world index on price-to-earnings, price-to-book and price-to-sales and offer a higher dividend yield, so they screen cheap. But the index leans on a few large luxury and energy names and earns a lower return on equity than the US — read the discount alongside the CAPE percentile versus France's own history.
Why does France screen cheap despite its luxury giants?
Because the index is more than luxury. Alongside world-class luxury, aerospace and cosmetics companies sit large banks, energy and industrial firms that trade on low multiples almost everywhere, dragging the blended valuation below the all-world index even though the premium names are expensive on their own.
How does France compare to the US and the world?
France trades at lower price-to-earnings, price-to-book and price-to-sales multiples and a higher dividend yield than both the US and the all-world index, with a lower return on equity. Its biggest stocks are global luxury and aerospace leaders, so the market is sensitive to international — particularly Chinese — demand.
Is the France CAPE figure a measured ratio?
No. Only the US CAPE is a measured series (from Robert Shiller). France's CAPE here is an estimate built from a free ETF price proxy (EWQ) and a recent anchor, so treat it as directional. The trailing P/E, P/B, P/S and dividend yield shown above are real, current figures reported by the country's tracker fund.
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