Canada Stock Market: current P/E Ratio

18.60
Last update: 03 October 2024

The estimated P/E Ratio for Canada Stock Market is 18.60, calculated on 03 October 2024.

Considering the last 5 years, an average P/E interval is [13.25 , 16.02]. 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.

03 October 2024 · P/E Ratio: 18.60
03 October 2024 · P/E Ratio: 18.60 · 1Y Average: 16.09 · 1 Std Dev range: [14.75 , 17.43] · 2 Std Dev range: [13.41 , 18.77]
03 October 2024 · P/E Ratio: 18.60 · 5Y Average: 14.63 · 1 Std Dev range: [13.25 , 16.02] · 2 Std Dev range: [11.86 , 17.41]
03 October 2024 · P/E Ratio: 18.60 · 10Y Average: 14.80 · 1 Std Dev range: [13.73 , 15.87] · 2 Std Dev range: [12.67 , 16.94]
03 October 2024 · P/E Ratio: 18.60 · 20Y Average: 14.19 · 1 Std Dev range: [13.20 , 15.18] · 2 Std Dev range: [12.20 , 16.17]
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".
03 October 2024 · P/E Ratio: 18.60 · 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
( 18.60 )
Deviation
vs μ
Valuation
Last 1Y 16.09 1.34 [13.41 · 14.75 , 17.43 · 18.77]
+1.87 σ
Overvalued
Last 2Y 14.37 1.63 [11.10 · 12.73 , 16.00 · 17.64]
+2.59 σ
Expensive
Last 3Y 13.70 1.31 [11.09 · 12.40 , 15.01 · 16.32]
+3.75 σ
Expensive
Last 4Y 14.28 1.32 [11.63 · 12.95 , 15.60 · 16.93]
+3.26 σ
Expensive
Last 5Y 14.63 1.39 [11.86 · 13.25 , 16.02 · 17.41]
+2.86 σ
Expensive
Last 6Y 14.33 1.26 [11.82 · 13.07 , 15.58 · 16.84]
+3.40 σ
Expensive
Last 7Y 14.37 1.13 [12.12 · 13.24 , 15.50 · 16.63]
+3.74 σ
Expensive
Last 8Y 14.54 1.07 [12.41 · 13.47 , 15.60 · 16.67]
+3.81 σ
Expensive
Last 9Y 14.68 1.08 [12.52 · 13.60 , 15.75 · 16.83]
+3.64 σ
Expensive
Last 10Y 14.80 1.07 [12.67 · 13.73 , 15.87 · 16.94]
+3.56 σ
Expensive
Last 11Y 14.76 0.98 [12.81 · 13.78 , 15.74 · 16.71]
+3.93 σ
Expensive
Last 12Y 14.58 1.05 [12.48 · 13.53 , 15.63 · 16.68]
+3.82 σ
Expensive
Last 13Y 14.35 1.17 [12.02 · 13.18 , 15.51 · 16.68]
+3.65 σ
Expensive
Last 14Y 14.29 1.14 [12.02 · 13.15 , 15.43 · 16.57]
+3.78 σ
Expensive
Last 15Y 14.30 1.08 [12.14 · 13.22 , 15.38 · 16.46]
+3.99 σ
Expensive
Last 16Y 14.17 1.12 [11.94 · 13.05 , 15.29 · 16.40]
+3.97 σ
Expensive
Last 17Y 14.12 1.12 [11.87 · 13.00 , 15.25 · 16.37]
+3.98 σ
Expensive
Last 18Y 14.16 1.09 [11.99 · 13.08 , 15.25 · 16.34]
+4.08 σ
Expensive
Last 19Y 14.17 1.04 [12.08 · 13.13 , 15.21 · 16.25]
+4.25 σ
Expensive
Last 20Y 14.19 0.99 [12.20 · 13.20 , 15.18 · 16.17]
+4.45 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 18.60
+1.87 σ +2.86 σ +3.56 σ +4.45 σ
All World 21.10
+1.66 σ +2.46 σ +3.64 σ +4.40 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 +9.40% 03 Oct
Short Term Price vs SMA50 +4.42% 03 Oct
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.