Canada Stock Market: current P/E Ratio

17.41
Last update: 24 May 2024

The estimated P/E Ratio for Canada Stock Market is 17.41, calculated on 24 May 2024.

Considering the last 5 years, an average P/E interval is [13.15 , 15.44]. For this reason, the current P/E can be considered Expensive

P/E Ratio is calculated on the EWC Etf, whose benchmark is the Canada 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 Canada 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: 17.41
24 May 2024 · P/E Ratio: 17.41 · 1Y Average: 14.31 · 1 Std Dev range: [13.72 , 14.89] · 2 Std Dev range: [13.14 , 15.48]
24 May 2024 · P/E Ratio: 17.41 · 5Y Average: 14.29 · 1 Std Dev range: [13.15 , 15.44] · 2 Std Dev range: [12.00 , 16.58]
24 May 2024 · P/E Ratio: 17.41 · 10Y Average: 14.71 · 1 Std Dev range: [13.73 , 15.69] · 2 Std Dev range: [12.76 , 16.66]
24 May 2024 · P/E Ratio: 17.41 · 20Y Average: 14.13 · 1 Std Dev range: [13.18 , 15.08] · 2 Std Dev range: [12.24 , 16.02]
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: 17.41 · 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
( 17.41 )
Deviation
vs μ
Valuation
Last 1Y 14.31 0.59 [13.14 · 13.72 , 14.89 · 15.48]
+5.29 σ
Expensive
Last 2Y 13.05 1.10 [10.84 · 11.95 , 14.16 · 15.26]
+3.95 σ
Expensive
Last 3Y 13.57 1.06 [11.45 · 12.51 , 14.63 · 15.69]
+3.63 σ
Expensive
Last 4Y 14.28 1.32 [11.63 · 12.95 , 15.60 · 16.93]
+2.36 σ
Expensive
Last 5Y 14.29 1.14 [12.00 · 13.15 , 15.44 · 16.58]
+2.73 σ
Expensive
Last 6Y 14.10 1.03 [12.03 · 13.06 , 15.13 · 16.16]
+3.21 σ
Expensive
Last 7Y 14.28 1.00 [12.29 · 13.29 , 15.28 · 16.27]
+3.15 σ
Expensive
Last 8Y 14.54 1.06 [12.41 · 13.47 , 15.60 · 16.66]
+2.70 σ
Expensive
Last 9Y 14.62 1.02 [12.58 · 13.60 , 15.64 · 16.66]
+2.73 σ
Expensive
Last 10Y 14.71 0.98 [12.76 · 13.73 , 15.69 · 16.66]
+2.77 σ
Expensive
Last 11Y 14.60 0.95 [12.71 · 13.66 , 15.55 · 16.50]
+2.97 σ
Expensive
Last 12Y 14.40 1.06 [12.29 · 13.35 , 15.46 · 16.51]
+2.85 σ
Expensive
Last 13Y 14.20 1.14 [11.92 · 13.06 , 15.34 · 16.48]
+2.81 σ
Expensive
Last 14Y 14.19 1.08 [12.03 · 13.11 , 15.27 · 16.35]
+2.98 σ
Expensive
Last 15Y 14.22 1.02 [12.18 · 13.20 , 15.24 · 16.26]
+3.13 σ
Expensive
Last 16Y 14.04 1.11 [11.83 · 12.94 , 15.15 · 16.26]
+3.04 σ
Expensive
Last 17Y 14.09 1.09 [11.91 · 13.00 , 15.18 · 16.27]
+3.04 σ
Expensive
Last 18Y 14.10 1.04 [12.02 · 13.06 , 15.14 · 16.19]
+3.18 σ
Expensive
Last 19Y 14.12 1.00 [12.13 · 13.12 , 15.11 · 16.11]
+3.31 σ
Expensive
Last 20Y 14.13 0.95 [12.24 · 13.18 , 15.08 · 16.02]
+3.46 σ
Expensive

P/E Comparison

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

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
Canada 17.41
+5.29 σ +2.73 σ +2.77 σ +3.46 σ
All World 19.49
+2.86 σ +1.68 σ +2.95 σ +3.66 σ

Canada Stock Market Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +7.13% 24 May
Short Term Price vs SMA50 +1.06% 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.