In a post-Brexit environment, many immediately wrote-off European exposure in a knee-jerk reaction to the ongoing uncertainties. However, investors may miss out on cheap valuations in Europe-related exchange traded funds as a long-term investment opportunity.

According to JPMorgan Asset Management, the European stock market has gotten too cheap to resist, with valuations on the MSCI Europe ex-UK Index and the FTSE All-Shares Index at attractive valuations when their price-to-earnings ratios are adjusted for inflation over the past 10 years, reports Aleksandra Gjorgievska for Bloomberg.

Related: Brexit Opens Opportunity for Europe ETFs

Adjusted for inflation, the MSCI Europe ex-UK Index traded at 15 times earnings at the end of June, compared to its long-term average of 19.4 since the 1980s. The FTSE All-Share Index was trading at 12.3 times earnings, compared to a mean of 17.

Looking at U.S.-listed ETF options, the broad Vanguard FTSE Europe ETF (NYSEArca: VGK) is trading at a 16.35 P/E – VGK includes exposure to Eurozone members along with U.K. and Switzerland. The Eurozone-focused iShares MSCI EMU ETF (NYSEArca: EZU) and SPDR EURO STOXX 50 (NYSEArca: FEZ) show a 14.22 P/E and 13.74 P/E, respectively.

Consequently, Stephen Macklow-Smith, head of European equity strategy at JPMorgan Asset Management, said European equities are a buy, with multiples below their long-term averages.

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