<p>I was thinking about a topic for my bachelor´s thesis and came across an interesting thing: P/E and other multiples of S&amp;P500 were higher than those of other markets. Is there any research on this topic? I would really appreciate it.</p>
<p>Another question:
As much I understand, that difference has to mean, that for example German stocks are</p>
<ol>
<li>more volatile</li>
<li>show less growth potential</li>
<li>the risk free rate in Germany is higher than in the US (it isn't)</li>
<li>the capital structure in Germany and the US is different (German companies have more equity compared to debt)</li>
</ol>
<p>I was thinking about checking all of these parameters to figure out if that was the case. Does that make sense to you?</p>

CC BY-SA 4.0
2024-04-17T06:00:11.093Z
Another possibility : the s&p is more concentrated in high p/e industries such as tech.
dm63
CC BY-SA 4.0
2024-04-28T23:40:45.227Z
Yes, everyone says so, but that would mean, that German stocks would have to have lower growth expectations, than the promising tech stocks, at the end of the day, tech stocks are valued more not because they're tech, but because people expect, that they´ll make a lot of cash
Matsvei Voltau
CC BY-SA 4.0
2024-04-30T11:33:26.523Z
Yes, you have elaborated accurately on my point.
dm63
<price><asset-pricing><fed-funds-rate><index>
Why does S&P 500 have a P/E Multiple of ca. 25 while other indexes (for ex. DAX) around 16?
Matsvei Voltau
# Why does S&P 500 have a P/E Multiple of ca. 25 while other indexes (for ex. DAX) around 16?

(Asked by: username_0 on 2024-04-15)

I was thinking about a topic for my bachelor´s thesis and came across an interesting thing: P/E and other multiples of S&P500 were higher than those of other markets. Is there any research on this topic? I would really appreciate it.

Another question:
As much I understand, that difference has to mean, that for example German stocks are

1. more volatile
2. show less growth potential
3. the risk free rate in Germany is higher than in the US (it isn't)
4. the capital structure in Germany and the US is different (German companies have more equity compared to debt)

I was thinking about checking all of these parameters to figure out if that was the case. Does that make sense to you?

**Tags:** price, asset-pricing, fed-funds-rate, index

> **Comments:**
> **username_1**: Another possibility : the s&p is more concentrated in high p/e industries such as tech.  
> **username_0**: Yes, everyone says so, but that would mean, that German stocks would have to have lower growth expectations, than the promising tech stocks, at the end of the day, tech stocks are valued more not because they're tech, but because people expect, that they´ll make a lot of cash  
> **username_1**: Yes, you have elaborated accurately on my point.  

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## 0 answers

