Australia Stock Market: current P/E Ratio

19.81
Last update: 24 May 2024

The estimated P/E Ratio for Australia Stock Market is 19.81, calculated on 24 May 2024.

Considering the last 5 years, an average P/E interval is [14.52 , 17.56]. For this reason, the current P/E can be considered Expensive

P/E Ratio is calculated on the EWA Etf, whose benchmark is the Australia Stock Market.

Historical P/E Ratio

When evaluating the P/E Ratio, it's important to not only look at its absolute value but also compare it to the average of previous periods. This allows for a more comprehensive understanding of the index/market valuation.

The following chart shows how the Australia Stock Market P/E Ratio has changed over time. Furthermore, for some trailing timeframes, you can view the average P/E and standard deviation.

24 May 2024 · P/E Ratio: 19.81
24 May 2024 · P/E Ratio: 19.81 · 1Y Average: 14.93 · 1 Std Dev range: [13.87 , 15.99] · 2 Std Dev range: [12.81 , 17.05]
24 May 2024 · P/E Ratio: 19.81 · 5Y Average: 16.04 · 1 Std Dev range: [14.52 , 17.56] · 2 Std Dev range: [13.00 , 19.08]
24 May 2024 · P/E Ratio: 19.81 · 10Y Average: 15.51 · 1 Std Dev range: [14.55 , 16.47] · 2 Std Dev range: [13.60 , 17.42]
24 May 2024 · P/E Ratio: 19.81 · 20Y Average: 14.43 · 1 Std Dev range: [13.20 , 15.66] · 2 Std Dev range: [11.98 , 16.88]
Methodology
The Average P/E (μ) and the Standard Deviation (σ) are calculated excluding 20% outliers (i.e. over a range of values excluding 10% of observations from the top and 10% from the bottom of the dataset).
A P/E between (μ - σ) and (μ + σ) is considered "Fair", over a specific timeframe.
A P/E greater than (μ + σ) is defined "Overvalued", greater than (μ + 2σ) is defined "Expensive".
A P/E less than (μ - σ) is defined "Undervalued", less than (μ - 2σ) is defined "Cheap".
24 May 2024 · P/E Ratio: 19.81 · Last Periods metrics
Show all periods
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Range
Analysis
Period Average P/E
(μ)
Std Dev
(σ)
Std Dev Range
[ μ-2σ · μ-σ , μ+σ · μ+2σ ]
vs Current P/E
( 19.81 )
Deviation
vs μ
Valuation
Last 1Y 14.93 1.06 [12.81 · 13.87 , 15.99 · 17.05]
+4.61 σ
Expensive
Last 2Y 14.18 0.79 [12.60 · 13.39 , 14.97 · 15.76]
+7.12 σ
Expensive
Last 3Y 14.97 1.22 [12.53 · 13.75 , 16.19 · 17.42]
+3.96 σ
Expensive
Last 4Y 15.89 1.72 [12.45 · 14.17 , 17.61 · 19.33]
+2.28 σ
Expensive
Last 5Y 16.04 1.52 [13.00 · 14.52 , 17.56 · 19.08]
+2.48 σ
Expensive
Last 6Y 15.72 1.36 [13.01 · 14.37 , 17.08 · 18.43]
+3.02 σ
Expensive
Last 7Y 15.68 1.18 [13.31 · 14.49 , 16.86 · 18.04]
+3.50 σ
Expensive
Last 8Y 15.67 1.01 [13.65 · 14.66 , 16.68 · 17.69]
+4.10 σ
Expensive
Last 9Y 15.58 0.94 [13.69 · 14.63 , 16.52 · 17.46]
+4.50 σ
Expensive
Last 10Y 15.51 0.96 [13.60 · 14.55 , 16.47 · 17.42]
+4.49 σ
Expensive
Last 11Y 15.32 0.98 [13.36 · 14.34 , 16.30 · 17.28]
+4.59 σ
Expensive
Last 12Y 15.15 1.03 [13.08 · 14.12 , 16.18 · 17.21]
+4.52 σ
Expensive
Last 13Y 14.90 1.19 [12.53 · 13.71 , 16.08 · 17.27]
+4.15 σ
Expensive
Last 14Y 14.65 1.36 [11.93 · 13.29 , 16.01 · 17.37]
+3.80 σ
Expensive
Last 15Y 14.70 1.30 [12.10 · 13.40 , 16.00 · 17.30]
+3.94 σ
Expensive
Last 16Y 14.46 1.44 [11.58 · 13.02 , 15.90 · 17.34]
+3.71 σ
Expensive
Last 17Y 14.46 1.42 [11.62 · 13.04 , 15.88 · 17.29]
+3.78 σ
Expensive
Last 18Y 14.42 1.35 [11.71 · 13.07 , 15.78 · 17.13]
+3.98 σ
Expensive
Last 19Y 14.41 1.29 [11.82 · 13.12 , 15.70 · 17.00]
+4.17 σ
Expensive
Last 20Y 14.43 1.23 [11.98 · 13.20 , 15.66 · 16.88]
+4.39 σ
Expensive

P/E Comparison

How is the Australia Stock Market P/E Ratio, compared to other global ratios?

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
Australia 19.81
+4.61 σ +2.48 σ +4.49 σ +4.39 σ
All World 19.49
+2.86 σ +1.68 σ +2.95 σ +3.66 σ
Developed ex-US 16.13
+5.00 σ +1.32 σ +2.30 σ +2.35 σ

Australia Stock Market Trend

Trend is evaluated considering the price of the EWA Etf and its 200/50-day moving averages (SMA).

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +7.26% 24 May
Short Term Price vs SMA50 +1.81% 24 May
The 200-day moving average is a long-term indicator that takes into account the average price of a stock over the past 200 trading days. It is considered a significant level of support or resistance, meaning that when the stock price is above the 200-day moving average (i.e. margin vs moving average is positive), it is generally viewed as bullish, while when it is below, it is viewed as bearish.

The 50-day moving average, on the other hand, is a shorter-term indicator that measures the average price of a stock over the past 50 trading days. It is also viewed as a significant level of support or resistance and can be used to identify shorter-term trends.