Netherlands CAPE Ratio
Current Netherlands CAPE
As of August 2026 · ratio
Rough estimate. This single-country CAPE is approximated by rolling the EWN 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 Netherlands cheap right now?
✓ Real · EWNOn 4 of 4 trailing multiples, Netherlands equities are priced below the all-world index (VT). These are current, fund-reported figures — not the estimated CAPE series charted below.
| Measure | Netherlands | World |
|---|---|---|
| P/E | 20.7 | 22.6 |
| P/B | 2.64 | 3.32 |
| P/S | 1.95 | 2.55 |
| Dividend yield | 4.24% | 1.59% |
| ROE (quality) | 12.7% | 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, Netherlands's estimated CAPE of 34.7 sits at the 86th percentile — historically expensive for Netherlands — above most of its own past readings.
Multiples as of August 2026.
- Historical average
- 25.2
- 365 months
- Historical median
- 23.6
- Percentile rank
- 86th percentile
- vs full history
- All-time range
- 11.1 – 46.3
- 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 the Netherlands 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 the Netherlands 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. The Netherlands is a barbell market, which makes its headline valuation easy to misread. The index pairs a world-leading, premium semiconductor-equipment champion with cheaper financials, consumer-staples and holding companies, and the blend nets to a discount to the all-world index on price-to-earnings, price-to-book and price-to-sales while offering a notably high dividend yield. So a low headline multiple hides two very different markets: an expensive structural-growth core and a cheaper, higher-yielding remainder. The most useful read combines the CAPE percentile (how the Netherlands is priced against its OWN history) with those cross-market multiples, remembering that one dominant stock drives much of the picture, 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 Netherlands ETF (EWN) 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 Dutch stock market cheap right now?
On the blended multiples above, the Netherlands trades below the all-world index on price-to-earnings, price-to-book and price-to-sales and offers a high dividend yield, so it screens cheap. But the index is a barbell — an expensive semiconductor-equipment leader plus cheaper financials and consumer names — so read the headline against the Netherlands' own CAPE history rather than treating it as uniformly cheap.
Why does the Netherlands screen cheap despite its premium tech leader?
Because the index is a barbell. Its dominant semiconductor-equipment champion is expensive, but it sits alongside lower-multiple financials, consumer-staples and holding companies that pay high dividends, and the blend nets to a discount to the all-world index even though the growth core is richly valued.
How concentrated is the Dutch index?
Very. A single semiconductor-equipment company is a large share of the index, so the market's earnings and valuation lean heavily on it. That concentration is why the headline multiple can be misleading and why the CAPE percentile against the country's own history is a more useful guide.
Is the Netherlands CAPE figure a measured ratio?
No. Only the US CAPE is a measured series (from Robert Shiller). The Netherlands' CAPE here is an estimate built from a free ETF price proxy (EWN) 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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