International Equities – A Valuation Opportunity

Tuesday, March 17, 2026

International equities have been difficult to defend in portfolios over the past decade, as U.S. markets have delivered sustained outperformance.

However, current valuation conditions across the MSCI ACWI ex-USA universe suggest a more constructive backdrop. Several dimensions within Ativo’s multi-factor framework—including intrinsic valuation, shareholder yield, and sentiment—are screening near historically inexpensive levels.

While valuation is not a timing tool, starting valuations have historically influenced long-term return outcomes. In this context, international equities may offer a more balanced risk-reward profile than has been observed in recent years.

This note examines the valuation landscape and its implications for portfolio construction.

Download PDF