EUROPEAN
EQUITIES
Attractive Valuations
Offer Opportunities

Novo Nordisk

AdidasASML
SAP

L’OréalMercedes-Benz

While Europe is known for some of the world's
most iconic brands, its stock universe oﬀers
additional opportunities that may be lesser known.

NestléMoët Hennessy
Louis Vuitton (LVMH)ATTRACTIVEVALUATIONSEuropean equities oﬀer lower or comparable
valuations to most North American and Asian markets.

Valuations as of Feb. 2024

Price-to-Book RatioEUROSTOXX 50

2.2

14.9

STOXX
EUROPE 600

2.0

14.4

Price-to-Earnings Ratio

On average, Europeanvaluations are nearly 50%
lower than U.S. valuations.

25.9

4.7

U.S.
Canada1.8

Japan1.6

Asia Paciﬁcex. China

1.8016.1
15.4
17.1
51015202530

Source: STOXX, February 29, 2024. The U.S. is represented by the STOXX USA Index. Canada is represented by the STOXX Canada Index.
Japan is represented by the STOXX Japan Index. Asia Paciﬁc ex. China is represented by the STOXX Asia Paciﬁc AC ex. China Index. Ratios basedon trailing 12 month ﬁnancials. The price to earnings ratio excludes companies with negative earnings. European valuations are 49% lower than
American valuations on average when comparing both ratios for the STOXX Europe 600, the EURO STOXX 50, and the STOXX USA Index.

With these lower valuations in mind,
European equities may oﬀer an aﬀordable
entry point for investors.

Research shows that lower price ratios havehistorically led to higher long-term returns.
Source: JP Morgan Asset Management, December 31, 2023; Knowledge
at Wharton, August 29, 2023. Research based on U.S. stocks.

MARKET
MOVEMENTS NOT
CLOSELY CONNECTEDOver the last decade, European equities
have had low-to-moderate correlation
with North American and Asian equities.
Source: STOXXCorrelation from Feb. 2014 to Feb. 2024

No Correlation

Moving in Unison

0.00

Daily USD Returns

1.00

EURO
STOXX 50STOXXEurope 600

U.S.

CanadaJapan

Asia Paciﬁcex. China

1.00

0.97

0.55

0.67

0.24

0.43

1.00

0.56

0.71

0.28

0.48

1.00

0.73

0.12

0.25

1.00

0.22

0.40

1.00

0.88

EURO
STOXX 50STOXXEurope600

U.S.

CanadaJapan

Asia Paciﬁcex. China

1.00
Source: STOXX, February 29, 2024. The U.S. is represented by the STOXX USA Price Index. Canada is represented by the STOXX Canada PriceIndex. Japan is represented by the STOXX Japan Price Index. Asia Paciﬁc ex. China is represented by the STOXX Asia Paciﬁc ex. China Price Index.

European equities can enhance portfolio diversiﬁcation due to their relatively
independent market movements from North American and Asian markets.
Ultimately, this has the potential to mitigate risk for investors.

TRACKING THE MARKET

For investors interested in European equities, STOXX oﬀers a variety of ﬂagship indices.

IndexMarket Cap€10.5TSTOXX Europe 600 Pan-regional, broad market
STOXX Developed Europe Pan-regional, broad-market€9.9T

STOXX Europe 600 ESG-X Pan-regional, broad-market, sustainability focus

€9.7T

€5.1T

STOXX Europe 50 Pan-regional, blue-chipEURO STOXX 50Eurozone, blue-chip€3.5T

Source: STOXX, February 29, 2024. Market cap is free ﬂoat, which represents
the shares that are readily available for public trading on stock exchanges.
STOXX Developed Europe market cap was $10.7T USD and converted toEuros using the closing exchange rate of 0.9255 on February 29, 2024.

The EURO STOXX 50 A closer look
The EURO STOXX 50 tracks the Eurozone's biggest and most traded supersector leaders.
It underlies one of the world’s largest
ranges of ETFs and mutual funds.

€27.3B
Assets underManagement
Tracking EUROSTOXX 50

€23.5BNot only that, futures and options on the EURO STOXX 50Index are the most actively-traded, EUR-denominatedequity index derivatives at Eurex.

Number of Traded Contracts on EUROSTOXX 50 Mar 2023–Feb 2024
254M

Options
ETFs

MutualFunds

238M

FuturesSource: Eurex, February 29, 2024

Source: STOXX,
November 2023

Investors can choose from a number of EUROSTOXX 50 subindices, based on their needs.

EURO STOXX 50 Volatility Index (VSTOXX)
Reﬂects implied volatility using the pricevariance of all options of a given time to expiry.

EURO STOXX 50 Dividend Points Index

EURO STOXX 50

Reﬂects gross cumulative cash dividends that areannounced and paid by EURO STOXX 50 constituents.

EURO STOXX 50 ESG Index
Reﬂects standard ESG exclusions such as
controversial weapons, and excludes the bottom
20% of the EURO STOXX 50 based on ESG scores.
Only a select number of EURO STOXX 50 subindices are shown.

Every index methodology is rules-based, transparent, and includes liquidity ﬁlters.

"

For the past 25 years, the EURO STOXX 50 has
served as an accurate, reliable and tradable
representation of the Eurozone equity market.

"Axel Lomholt
General Manager, STOXXKEY FACTS ABOUT STOXX
Comprehensive, liquid
and investable ecosystem

European heritage,
global reachHighly sophisticatedcustomization capabilities

Open architecture
approach to using data

Close partnerships
with clients

Part of ISS STOXX andDeutsche Börse Group

Find out more about European indices

STOXX Ltd. and its licensors, research partners or data providers are not providing investment advice through the publication of indices orin connection therewith. Financial instruments based on STOXX indices, DAX indices or on any other indices supported by STOXX are in noway sponsored, endorsed, sold or promoted by STOXX, Deutsche Boerse Group or their licensors, research partners or data providers.
STOXX is a registered trademark of STOXX Ltd., Zug, Switzerland.
This document has not been submitted to, nor received approval from theUnited StatesSecurities and Exchange Commission or any other regulatory body.
© 2024 STOXX Ltd.

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