Taiwan CAPE Ratio
Current Taiwan CAPE
As of August 2026 · ratio
Source: EWT — iShares MSCI Taiwan ETF
Rough estimate. This single-country CAPE is approximated by rolling the EWT 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 Taiwan cheap right now?
✓ Real · EWTOn 1 of 4 trailing multiples, Taiwan equities are priced above the all-world index (VT). These are current, fund-reported figures — not the estimated CAPE series charted below.
| Measure | Taiwan | World |
|---|---|---|
| P/E | 28.1 | 22.6 |
| P/B | 3.91 | 3.32 |
| P/S | 2.49 | 2.55 |
| Dividend yield | 1.04% | 1.59% |
| ROE (quality) | 13.9% | 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, Taiwan's estimated CAPE of 44.2 sits at the 99th percentile — historically expensive for Taiwan — above most of its own past readings.
Multiples as of August 2026.
- Historical average
- 25.4
- 314 months
- Historical median
- 24.4
- Percentile rank
- 99th percentile
- vs full history
- All-time range
- 12.9 – 48.0
- Last updated
- August 2026
- since July 2000
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 Taiwan 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 Taiwan 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. Taiwan is not a cheap market but a concentrated technology bet, which is the key to reading its CAPE. The index is dominated by a single world-leading chip foundry and a cluster of other semiconductor and hardware names, and it trades at a premium to the all-world index on price-to-earnings and price-to-book after re-rating on the artificial-intelligence and semiconductor boom. Holding that premium down is geopolitical risk: the cross-strait tension with China is a tail risk investors price in, which is part of why the multiple is not even higher. The most useful read combines the CAPE percentile (how Taiwan is priced against its OWN history) with those cross-market multiples, weighing the AI tailwind against the concentration and political risk before concluding anything about value.
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 Taiwan ETF (EWT) 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 Taiwanese stock market cheap right now?
No. Taiwan trades at a premium to the all-world index on price-to-earnings and price-to-book, having re-rated on the AI and semiconductor boom. Its valuation is really a bet on a few large chipmakers — read it against Taiwan's own CAPE history and weigh the geopolitical risk rather than expecting a discount.
Why is Taiwan's market so concentrated?
A single dominant chip foundry plus a cluster of semiconductor and electronics-hardware firms make up a very large share of the index. That gives Taiwan world-leading exposure to the AI and semiconductor cycle, but it also means the market's fortunes hinge on a handful of companies.
How does geopolitical risk affect Taiwan's valuation?
Cross-strait tension with China is a genuine tail risk that investors discount, which helps cap Taiwan's multiple even during strong chip-driven rallies. It is one reason a market with such high-quality technology leaders does not trade at an even larger premium.
Is the Taiwan CAPE figure a measured ratio?
No. Only the US CAPE is a measured series (from Robert Shiller). Taiwan's CAPE here is an estimate built from a free ETF price proxy (EWT) 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.
Embed or download this chart
Free to use with attribution. The embedded image updates automatically as the data does.