China Stock Market: current P/E Ratio

9.38
Last update: 24 May 2024

The estimated P/E Ratio for China Stock Market is 9.38, calculated on 24 May 2024.

Considering the last 5 years, an average P/E interval is [9.38 , 13.29]. For this reason, the current P/E can be considered Undervalued

P/E Ratio is calculated on the FXI Etf, whose benchmark is the China 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 China 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: 9.38
24 May 2024 · P/E Ratio: 9.38 · 1Y Average: 8.77 · 1 Std Dev range: [8.36 , 9.18] · 2 Std Dev range: [7.94 , 9.60]
24 May 2024 · P/E Ratio: 9.38 · 5Y Average: 11.34 · 1 Std Dev range: [9.38 , 13.29] · 2 Std Dev range: [7.43 , 15.24]
24 May 2024 · P/E Ratio: 9.38 · 10Y Average: 11.02 · 1 Std Dev range: [9.54 , 12.50] · 2 Std Dev range: [8.06 , 13.98]
24 May 2024 · P/E Ratio: 9.38 · 20Y Average: 11.08 · 1 Std Dev range: [9.43 , 12.73] · 2 Std Dev range: [7.78 , 14.38]
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: 9.38 · 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
( 9.38 )
Deviation
vs μ
Valuation
Last 1Y 8.77 0.41 [7.94 · 8.36 , 9.18 · 9.60]
+1.46 σ
Overvalued
Last 2Y 9.30 0.67 [7.96 · 8.63 , 9.97 · 10.64]
+0.11 σ
Fair
Last 3Y 10.02 1.33 [7.35 · 8.69 , 11.36 · 12.69]
-0.49 σ
Fair
Last 4Y 11.30 2.25 [6.81 · 9.05 , 13.55 · 15.80]
-0.86 σ
Fair
Last 5Y 11.34 1.95 [7.43 · 9.38 , 13.29 · 15.24]
-1.00 σ
Undervalued
Last 6Y 11.19 1.68 [7.84 · 9.52 , 12.87 · 14.55]
-1.08 σ
Undervalued
Last 7Y 11.50 1.63 [8.25 · 9.87 , 13.13 · 14.76]
-1.31 σ
Undervalued
Last 8Y 11.46 1.42 [8.61 · 10.04 , 12.88 · 14.30]
-1.46 σ
Undervalued
Last 9Y 11.22 1.42 [8.37 · 9.79 , 12.64 · 14.07]
-1.29 σ
Undervalued
Last 10Y 11.02 1.48 [8.06 · 9.54 , 12.50 · 13.98]
-1.11 σ
Undervalued
Last 11Y 10.71 1.50 [7.71 · 9.21 , 12.21 · 13.71]
-0.89 σ
Fair
Last 12Y 10.53 1.49 [7.56 · 9.04 , 12.02 · 13.51]
-0.78 σ
Fair
Last 13Y 10.36 1.44 [7.48 · 8.92 , 11.80 · 13.24]
-0.69 σ
Fair
Last 14Y 10.47 1.41 [7.65 · 9.06 , 11.89 · 13.30]
-0.78 σ
Fair
Last 15Y 10.76 1.59 [7.58 · 9.17 , 12.35 · 13.95]
-0.87 σ
Fair
Last 16Y 10.73 1.58 [7.58 · 9.16 , 12.31 · 13.88]
-0.86 σ
Fair
Last 17Y 10.98 1.75 [7.48 · 9.23 , 12.72 · 14.47]
-0.92 σ
Fair
Last 18Y 11.11 1.78 [7.55 · 9.33 , 12.88 · 14.66]
-0.97 σ
Fair
Last 19Y 11.08 1.71 [7.66 · 9.37 , 12.79 · 14.50]
-1.00 σ
Fair
Last 20Y 11.08 1.65 [7.78 · 9.43 , 12.73 · 14.38]
-1.04 σ
Undervalued

P/E Comparison

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

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
China 9.38
+1.46 σ -1.00 σ -1.11 σ -1.04 σ
All World 19.49
+2.86 σ +1.68 σ +2.95 σ +3.66 σ
Emerging Markets 14.41
+4.30 σ +0.71 σ +1.46 σ +1.63 σ

China Stock Market Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +9.91% 24 May
Short Term Price vs SMA50 +7.70% 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.