Data Dashboard Morningstar Global Valuation Lens The United States remained among the more moderately priced developed markets at the end of August, but it still traded at a 3.5% premium to fair value. Germany was at a slight discount, an exception to generally high valuations. Developing markets also traded at high premiums overall. U.S. 3.5% Greater Europe 2.5% < -5.0% -4.9 to -0.1% 0.0% Greater Asia 4.1% > 5.0% 0.1 to 4.9% Fairly Valued Undervalued Overvalued Price/Fair Value by Country 08/31/2017 Finland 9.3% Norway 4.8% Canada 3.6% Russia -0.2% U.K. 9.2% Sweden 2.8% France 2.8% Germany -0.5% Japan 1.8% Spain -0.3% United States 3.5% China 4.9% Hong Kong 5.0% South Korea 0.4% Mexico 2.7% Taiwan 12.2% Nigeria 7.8% Colombia 5.1% Brazil 5.1% India 3.6% New Zealand 5.0% South Africa 6.9% Australia 12.3% Chile 4.1% Argentina 2.2% Under- and Overvalued Countries 08/31/2017 Undervalued Overvalued +20.0 % Israel South Korea Italy Japan Argentina Switzerland Singapore Mexico Philippines Sweden France Netherlands Bulgaria United Arab Emirates United States Canada India Thailand Chile Saudi Arabia Vietnam Bangladesh Norway China New Zealand Hong Kong Brazil Colombia Belgium Malaysia Peru Turkey Romania Austria Indonesia South Africa Portugal Nigeria Greece Denmark Poland United Kingdom Finland Egypt Taiwan Australia Iraq Pakistan Qatar Germany Spain Russia A percentage of 0.0 connotes fairly valued P/FV 0.0 -20.0 Country fair-value ratios are derived from P/FV ratios on underlying stocks in those nations, generated primarily from estimates by Morningstar analysts, or, when an analyst estimate isn't available, a fair value generated using Morningstar's quantitative equity ratings. The data is then adjusted to account for market capitalization. Some countries are omitted due to outliers in the data: less than a $10,000 three-month median-dollar-trading volume or fewer than 20 total stocks that clear the screens. Stocks that trade for 50 cents or less a share are also removed. Uncertainty attempts to measure the confidence Morningstar analysts have in a company's ability to generate future cash flows. 90 Morningstar October/November 2017