Danish shares are the most expensive in the world

High expectations lead to high prices

Shares of companies listed on the Danish stock exchange are the world's most expensive, writes Berlingske Busines. According to the paper, the reason for the high price is the very high earnings expectations of major Danish companies, led by the most expensive listed company in Denmark, Novo Nordisk.

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In Denmark, it costs 19 kroner for one kroner of expected annual profit – the so-called P/E ratio. That makes Danish shares more expensive than US stocks, with a P/E ratio of less than 17, and more expensive than shares in Sweden and Norway, where the P/E value is 16.

According to Danish pension firm PFA, the high prices are not signs of a stock bubble.

“Danish shares are not a bargain, but we do not believe there is a bubble,” said PFA  chief strategist Henrik Henriksen.