Canada Stock Market: current P/E Ratio

19.74
Last update: 05 December 2024

The estimated P/E Ratio for Canada Stock Market is 19.74, calculated on 05 December 2024.

Considering the last 5 years, an average P/E interval is [13.29 , 16.25]. 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.

05 December 2024 · P/E Ratio: 19.74
05 December 2024 · P/E Ratio: 19.74 · 1Y Average: 17.09 · 1 Std Dev range: [15.91 , 18.27] · 2 Std Dev range: [14.73 , 19.45]
05 December 2024 · P/E Ratio: 19.74 · 5Y Average: 14.77 · 1 Std Dev range: [13.29 , 16.25] · 2 Std Dev range: [11.81 , 17.73]
05 December 2024 · P/E Ratio: 19.74 · 10Y Average: 14.87 · 1 Std Dev range: [13.78 , 15.97] · 2 Std Dev range: [12.68 , 17.07]
05 December 2024 · P/E Ratio: 19.74 · 20Y Average: 14.21 · 1 Std Dev range: [13.20 , 15.22] · 2 Std Dev range: [12.19 , 16.23]
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".
05 December 2024 · P/E Ratio: 19.74 · 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
( 19.74 )
Deviation
vs μ
Valuation
Last 1Y 17.09 1.18 [14.73 · 15.91 , 18.27 · 19.45]
+2.24 σ
Expensive
Last 2Y 15.01 1.81 [11.38 · 13.20 , 16.83 · 18.64]
+2.60 σ
Expensive
Last 3Y 13.90 1.60 [10.69 · 12.30 , 15.51 · 17.11]
+3.63 σ
Expensive
Last 4Y 14.35 1.43 [11.48 · 12.91 , 15.78 · 17.21]
+3.76 σ
Expensive
Last 5Y 14.77 1.48 [11.81 · 13.29 , 16.25 · 17.73]
+3.36 σ
Expensive
Last 6Y 14.49 1.32 [11.84 · 13.17 , 15.81 · 17.13]
+3.97 σ
Expensive
Last 7Y 14.42 1.20 [12.01 · 13.21 , 15.62 · 16.82]
+4.43 σ
Expensive
Last 8Y 14.56 1.10 [12.35 · 13.46 , 15.67 · 16.77]
+4.68 σ
Expensive
Last 9Y 14.72 1.12 [12.48 · 13.60 , 15.84 · 16.96]
+4.48 σ
Expensive
Last 10Y 14.87 1.10 [12.68 · 13.78 , 15.97 · 17.07]
+4.43 σ
Expensive
Last 11Y 14.81 1.01 [12.80 · 13.81 , 15.82 · 16.82]
+4.89 σ
Expensive
Last 12Y 14.65 1.06 [12.53 · 13.59 , 15.70 · 16.76]
+4.82 σ
Expensive
Last 13Y 14.42 1.16 [12.10 · 13.26 , 15.58 · 16.74]
+4.59 σ
Expensive
Last 14Y 14.33 1.17 [11.99 · 13.16 , 15.50 · 16.67]
+4.62 σ
Expensive
Last 15Y 14.33 1.11 [12.11 · 13.22 , 15.44 · 16.54]
+4.88 σ
Expensive
Last 16Y 14.23 1.11 [12.00 · 13.12 , 15.34 · 16.45]
+4.95 σ
Expensive
Last 17Y 14.13 1.14 [11.85 · 12.99 , 15.27 · 16.41]
+4.92 σ
Expensive
Last 18Y 14.19 1.11 [11.98 · 13.08 , 15.30 · 16.40]
+5.01 σ
Expensive
Last 19Y 14.19 1.06 [12.07 · 13.13 , 15.25 · 16.31]
+5.22 σ
Expensive
Last 20Y 14.21 1.01 [12.19 · 13.20 , 15.22 · 16.23]
+5.47 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 19.74
+2.24 σ +3.36 σ +4.43 σ +5.47 σ
All World 21.29
+1.49 σ +2.46 σ +3.55 σ +4.36 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 +10.69% 05 Dec
Short Term Price vs SMA50 +3.35% 05 Dec
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.