International equities: From value trap to value creation?

Janus Henderson / Equity

10-09-2026

International Equities Shift from Cheap Valuations to Improving Quality

Janus Henderson’s Faizan Baig and Callum Rushforth assess whether corporate reform and rising profitability can sustain the re-rating of international equity markets.

Many ex-US markets still trade at valuation discounts despite signs of improving return on equity and capital efficiency.
Corporate reform in Japan, South Korea and parts of Europe is strengthening governance, buybacks, dividend payouts and shareholder returns.
The opportunity increasingly rests on improving business quality rather than low valuations alone, with further upside possible if profitability gains persist.

Explore the full report to assess where structural reform may create the strongest international equity opportunities.