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For example, I have seen it asserted that a stock that trades at less than bookvalue is cheap or that a stock that trades at more than twenty times EBITDA is expensive. I do report on a few market-wide data items especially on riskpremiums for both equity and debt. Price to Book 3. High-Low Price Risk Measure 5.
Thus, as you peruse my historical data on implied equity riskpremiums or PE ratios for the S&P 500 over time, you may be tempted to compute averages and use them in your investment strategies, or use my industry averages for debt ratios and pricing multiples as the target for every company in the peer group, but you should hold back.
The logical step in looking across countries is measuring risk in countries, and bringing that risk into your analysis, by incorporating that risk by demanding higher expected returns in riskier countries. The answers, to you, may seem obvious, but I find it useful to organize the obvious into buckets for analysis.
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