
Explaining the Valuation Gap Between U.S. and International Stocks (Mar 14, 2025)
created At: 3/17/2025

Neutral
This analysis was written from a neutral perspective. We advise you to always make careful and well-informed investment decisions.
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Fact
U.S. stocks trade at higher valuations than international stocks.
Listing location, not just fundamentals, drives valuation premiums.
U.S. revenue exposure is associated with lower valuations.
Half of the valuation gap is due to U.S. exchange listing effects.
International stocks may offer superior relative value in the coming years.
Opinion
U.S. stocks appear overvalued beyond fundamentals, making it likely that valuation gaps will shrink over time.
This suggests that expanding exposure to international markets could be a more profitable long-term strategy.
Core Sell Point
As U.S. stock valuations become harder to justify, shifting investments toward international markets presents a compelling opportunity.
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