Netherlands Stock Market Valuations and Expected Future Returns

Updated at Mon, 27 Jun 2016 20:30:08 -0500
Country: Netherlands (updated daily) check out Global Overview for detailed methodology.

Ratio of total market cap over GDP: Maximum - 503%; Minimum - 51%; current - 84%
Expected future annual return: 11.3%

ETF Used for dividend yield: EWN (Yield=1.97%)
Market Index used: AEX index
Current Annual GDP: $939 billion US dollars or 685 in billions of national currency (GDP in Local Current Prices Annual Growth=2.28%)
Data since year 1992


Netherlands Historical GDP Growth

Historical GDP of Netherlands in billions of national currency. The GDP in local current prices has grown at the annual rate of 2.28% over the past 8 years. Please note this growth rate includes the effect of price inflation and it is NOT the real GDP growth rate. Current Annual GDP: $939 billion US dollars or 685 in billions of national currency.

Netherlands GDP (Billion, National Currency)

Historical Stock Market Cap

Historical total market of Netherlands in billions of national currency. This value is normalized using the data published by WorldBank. AEX index is used for the normalization. The index is composed of a maximum of 25 of the most actively traded securities trade on Euronext Amsterdam.

Netherlands Total Market Cap (Billion, National Currency)

Historical Ratio of Total Market Cap over GDP (%)

The current ratio of total market cap over GDP for Netherlands is 84%. The historical high was 503%; the historical low was 51%. If we assume that the ratio will reverse to the historical mean of 157% over the next 8 years, the contribution to expected annual return is 7.06%. This is the detailed historical chart of the ratio.

Netherlands Ratio of Total Market Cap over GDP (%)

Conclusion

The stock market of Netherlands is expected to return 11.3% a year for the coming years. This is from the contribution of economic growth in local current prices: 2.28%, Dividend Yield: 1.97% and valuation reverse to the mean 7.06%.

This is the projected return of the stock market in Netherlands relative to other countries. Click on each bar in the chart to go to other countries:


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