Switzerland CAPE Ratio
Current Switzerland CAPE
As of August 2026 · ratio
Rough estimate. This single-country CAPE is approximated by rolling the EWL 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 Switzerland cheap right now?
✓ Real · EWLOn 1 of 4 trailing multiples, Switzerland equities are priced above the all-world index (VT). These are current, fund-reported figures — not the estimated CAPE series charted below.
| Measure | Switzerland | World |
|---|---|---|
| P/E | 25.9 | 22.6 |
| P/B | 4.45 | 3.32 |
| P/S | 2.93 | 2.55 |
| Dividend yield | 1.73% | 1.59% |
| ROE (quality) | 17.2% | 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, Switzerland's estimated CAPE of 30.8 sits at the 96th percentile — historically expensive for Switzerland — above most of its own past readings.
Multiples as of August 2026.
- Historical average
- 24.3
- 365 months
- Historical median
- 24.8
- Percentile rank
- 96th percentile
- vs full history
- All-time range
- 14.5 – 36.4
- 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 Switzerland 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 Switzerland 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. Switzerland is a quality-and-defensive market, and a clean illustration of why a high valuation is not automatically expensive. Swiss equities trade at a premium to the all-world index on price-to-book and roughly in line on earnings — but the index is dominated by a handful of defensive, highly profitable global leaders in pharmaceuticals, consumer staples and luxury, which earn a markedly higher return on equity than the world average. That quality is what the premium pays for: stable, hard-currency earnings that hold up through downturns. The most useful read combines the CAPE percentile (how Switzerland is priced against its OWN history) with the trailing multiples and that high return on equity before deciding whether the premium is deserved.
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 Switzerland ETF (EWL) 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 Swiss stock market cheap right now?
No. Switzerland trades at a premium to the all-world index, especially on price-to-book, because its index is concentrated in highly profitable, defensive pharmaceutical, consumer-staples and luxury leaders. The high valuation largely reflects that quality — read it against Switzerland's own CAPE history rather than expecting a discount.
Why is the Swiss market so highly valued?
Quality and stability. A few global champions in pharma, consumer staples and luxury dominate the index, earning a high and steady return on equity in a hard currency. Investors pay up for defensive, reliable earnings, which lifts the market's multiples — particularly price-to-book.
How does Switzerland compare to the US and the world?
Switzerland trades at a premium to the all-world index on book value and broadly in line on earnings, with a return on equity well above the world average. It is less cyclical than most markets, so it tends to hold its valuation better in downturns and lag in strong risk-on rallies.
Is the Switzerland CAPE figure a measured ratio?
No. Only the US CAPE is a measured series (from Robert Shiller). Switzerland's CAPE here is an estimate built from a free ETF price proxy (EWL) 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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