Whilst there are numerous ways of assessing the valuation of an equity market, the UK is cheap on almost all of them, according to Longview Economics. On a stand-alone basis (based on consensus forward earnings), the FTSE100 is on a PER of 12.0x, a level which is only typically reached in recessions or crises (e.g. the Eurozone crisis from 2010 – 2012), their research shows. This is across the board including the FTSE all share PER (which includes the mid-caps as well as the large caps) value and the FTSE250 mid-caps index. Compared to other countries’ equity markets, the UK’s valuation is also cheap. Against the S&P500, the FTSE100 is trading at a 28% PER discount. Indeed, other than October 2008, it’s never been cheaper relative to the US market, going back to 1988 when this data series began, according to Longview. Furthermore, it’s not just UK equities that trade at a discount to overseas assets. All key UK asset classes (except for bonds) trade at lower valuation levels. UK commercial property, for example, is trading at a discount to its normal relative valuation levels, while the currency is also cheap relative to long term valuation measures (i.e. PPP), the report shows. But equities are the stand out, being the cheapest of all UK assets in relative terms.