I work with someone who is adamant on comparing the PE values of different countries benchmark indexes, and using that to say that one country’s equity market is undervalued etc. [The only context i am used to using PE is stock vs its sector, and even then it can be hard to define a comparator group.]
This seems like total garbage to me, even the data is distorted by negative earnings, but what are the key reasons why this analysis is meaningless in practice?
Brainstorm