Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )

A naive comparison of P/E ratios suggests that Japanese
stocks, with a P/E ratio of 45.01, are overvalued, while
RussianandVenezuelanstocks,withsingle-digitP/Eratios,
areundervalued. However, differences inP/E ratios across
countriesreflectdifferencesininterestratesacrosscountries,
withlower(orhigher)P/Eratiosincountrieswithhigher(or
lower) interest rates. The following table summarizes the