Switzerland Stock Market Valuations and Expected Future Returns

Updated at Sun, 24 Jul 2016 20:30:09 -0500
Country: Switzerland (updated daily) check out Global Overview for detailed methodology.

Ratio of total market cap over GDP: Maximum - 431%; Minimum - 84%; current - 261%
Expected future annual return: 4.9%

ETF Used for dividend yield: EWL (Yield=2.41%)
Market Index used: Swiss Market Index
Current Annual GDP: $709 billion US dollars or 632 in billions of national currency (GDP in Local Current Prices Annual Growth=2.43%)
Data since year 1990


Switzerland Historical GDP Growth

Historical GDP of Switzerland in billions of national currency. The GDP in local current prices has grown at the annual rate of 2.43% 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: $709 billion US dollars or 632 in billions of national currency.

Switzerland GDP (Billion, National Currency)

Historical Stock Market Cap

Historical total market of Switzerland in billions of national currency. This value is normalized using the data published by WorldBank. Swiss Market Index is used for the normalization. It is made up of twenty of the largest and most liquid SPI large- and mid-cap stocks.

Switzerland Total Market Cap (Billion, National Currency)

Historical Ratio of Total Market Cap over GDP (%)

The current ratio of total market cap over GDP for Switzerland is 261%. The historical high was 431%; the historical low was 84%. If we assume that the ratio will reverse to the historical mean of 252% over the next 8 years, the contribution to expected annual return is 0.02%. This is the detailed historical chart of the ratio.

Switzerland Ratio of Total Market Cap over GDP (%)

Conclusion

The stock market of Switzerland is expected to return 4.9% a year for the coming years. This is from the contribution of economic growth in local current prices: 2.43%, Dividend Yield: 2.41% and valuation reverse to the mean 0.02%.

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


You can go here to see what international stocks Gurus are buying.

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