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Are stocks listed in NYSE or Nasdaq trading at a premium compared with stocks listed in Europe, Canada, or other countries?

For the same financial situations, such as revenue, income, balance sheet and cash flow, if a company is listed in NYSE or Nasdaq, will its stock price be higher than if it is listed in other countries?

I googled searched, but I could not find any comparative study on this topic. Does anyone know the answer? If you can point out any published objective data/report, it will be even better.

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  • If shares were sold in NY at a premium over Toronto or the European markets, traders would quickly buy them in Toronto and the other European markets to be instantly resold in NY; the premium would quickly disappear.
    – RonJohn
    Jun 15, 2021 at 17:47
  • This is not what I mean. Possibly I should clarify my question. What I mean is the company can only choose one stock exchange to list. Whether it chooses NYSE or HK stock exchange is a choice. I don't know whether this choice will make any difference in terms of stock price/valuation.
    – Jerry Zhang
    Jun 15, 2021 at 18:15
  • Or, put in a simpler but similar way: Does the average P/E value of the software segment in HK stock exchange have the similar P/E value of the software segment in NYSE? This is not exactly the original question, but I think you will get the idea.
    – Jerry Zhang
    Jun 15, 2021 at 18:17
  • "What I mean is the company can only choose one stock exchange to list". Yes, you definitely need to edit your question, since everyone is presuming that shares are sold on multiple exchanges.
    – RonJohn
    Jun 15, 2021 at 18:29
  • hi @JerryZhang I have give the correct answer to what you're actually asking. the other folks think you are asking something utterly unrelated (about arb.)
    – Fattie
    Jun 15, 2021 at 18:57

2 Answers 2

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Not by much and not for very long. Otherwise international institutions that can trade in both market would arbitrage the difference, bringing the prices in line.

Suppose stock ABC was trading for $100 on the NYSE and for the equivalent (after currency conversion) of $105 in Europe. A multinational institution could buy the stock on the NYSE for $100 and immediately sell it for $105, resulting in an immediate risk-free profit. That transaction would increase the demand on the stock in the US, bringing the price up, and increase the "supply" of stock in Europe, bringing that price down. Eventually the price will reach an "equilibrium", only differing by transaction costs (both actual costs like commissions and implied costs like currency translation and bid/ask spread).

Edit based on comments:

If the question is if P/E multiples and other indicators are different in different exchanges, the answer is yes, but not because of the exchange, but because of the market that the company is in. Average P/E multiples in one market (not stock market, but economic market) could be different because or laws, regulations, competition, local supply/demand, etc.

I can't see why the actual exchange itself would have any bearing on multiples or any other aspect of valuation. Imagine two vendors in the exact same plaza auctioning off the exact same apples - why would the same apples sold by one vendor be worth more than those sold by another? People would just go to the cheaper vendor, driving down the price until they are equal.

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  • DS, as I just mention to RJ, the OP is not asking about arbitrage. He is asking if valuations are different on the two continents .. he's asking if multiples, if you will, are different on the two continents.
    – Fattie
    Jun 15, 2021 at 18:56
  • >why would the same apples sold by one vendor be worth more than those sold by another? Because they are not the "the same" apples, one is cheap fruit that only poor people buy at a poor peoples vendor while the other is a luxury vendor that only caters to the elites and not the pleb. Do not underestimate the illusion of exclusivity and peoples feelings.
    – Bartors
    Oct 25, 2021 at 7:58
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The question is meaningless because "valuation" means nothing more than "some particular opinion on the value".

For example, from a newspaper, TV business show, or the analysis department of a bank or trading house.

Some things are measurable facts. For example "the temperature" or "the population of Denver".

"Valuation" is an opinion, we speak of "the Wall St Journal values them at 10 billion" whereas "Bank of America values them at 11 billion" but "The Economist values them at 9 billion" and so on.

could not find any comparative study

It would be like saying you want a comparative study on "the 'Best' movie ever made". You can find many magazine articles giving various opinions on that, but it's just opinion, talk.

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    OP's question does not mention value, and what it does mention ("stock price") is of course measurable facts by date and time.
    – RonJohn
    Jun 15, 2021 at 17:52
  • ? No man, he's not asking about arbitrage. Note the second para. he believes in a stock having a "real" value.
    – Fattie
    Jun 15, 2021 at 18:55
  • @RonJohn , note the OP tried to clarify in a comment: "Does the average P/E value [huh?] of the software segment in HK stock exchange have the similar P/E value of the software segment in NYSE"
    – Fattie
    Jun 15, 2021 at 18:58

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