Japan Stock Market: current P/E Ratio

17.56
Last update: 03 October 2024

The estimated P/E Ratio for Japan Stock Market is 17.56, calculated on 03 October 2024.

Considering the last 5 years, an average P/E interval is [13.21 , 16.39]. For this reason, the current P/E can be considered Overvalued

P/E Ratio is calculated on the EWJ Etf, whose benchmark is the Japan 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 Japan 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: 17.56
03 October 2024 · P/E Ratio: 17.56 · 1Y Average: 15.69 · 1 Std Dev range: [14.83 , 16.55] · 2 Std Dev range: [13.96 , 17.42]
03 October 2024 · P/E Ratio: 17.56 · 5Y Average: 14.80 · 1 Std Dev range: [13.21 , 16.39] · 2 Std Dev range: [11.62 , 17.98]
03 October 2024 · P/E Ratio: 17.56 · 10Y Average: 14.03 · 1 Std Dev range: [12.82 , 15.23] · 2 Std Dev range: [11.62 , 16.44]
03 October 2024 · P/E Ratio: 17.56 · 20Y Average: 14.49 · 1 Std Dev range: [12.89 , 16.09] · 2 Std Dev range: [11.30 , 17.68]
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: 17.56 · 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
( 17.56 )
Deviation
vs μ
Valuation
Last 1Y 15.69 0.86 [13.96 · 14.83 , 16.55 · 17.42]
+2.16 σ
Expensive
Last 2Y 14.35 1.40 [11.55 · 12.95 , 15.75 · 17.16]
+2.29 σ
Expensive
Last 3Y 13.84 1.21 [11.41 · 12.62 , 15.05 · 16.26]
+3.07 σ
Expensive
Last 4Y 14.64 1.56 [11.51 · 13.08 , 16.21 · 17.77]
+1.86 σ
Overvalued
Last 5Y 14.80 1.59 [11.62 · 13.21 , 16.39 · 17.98]
+1.74 σ
Overvalued
Last 6Y 14.26 1.62 [11.01 · 12.64 , 15.88 · 17.50]
+2.04 σ
Expensive
Last 7Y 14.13 1.49 [11.15 · 12.64 , 15.62 · 17.11]
+2.30 σ
Expensive
Last 8Y 14.10 1.30 [11.49 · 12.79 , 15.40 · 16.70]
+2.65 σ
Expensive
Last 9Y 13.94 1.25 [11.45 · 12.70 , 15.19 · 16.44]
+2.90 σ
Expensive
Last 10Y 14.03 1.20 [11.62 · 12.82 , 15.23 · 16.44]
+2.93 σ
Expensive
Last 11Y 13.94 1.10 [11.75 · 12.85 , 15.04 · 16.14]
+3.30 σ
Expensive
Last 12Y 13.94 1.10 [11.74 · 12.84 , 15.03 · 16.13]
+3.30 σ
Expensive
Last 13Y 13.75 1.11 [11.53 · 12.64 , 14.86 · 15.97]
+3.43 σ
Expensive
Last 14Y 13.66 1.09 [11.49 · 12.57 , 14.74 · 15.83]
+3.59 σ
Expensive
Last 15Y 13.85 1.22 [11.41 · 12.63 , 15.07 · 16.28]
+3.05 σ
Expensive
Last 16Y 13.98 1.37 [11.25 · 12.61 , 15.35 · 16.72]
+2.61 σ
Expensive
Last 17Y 13.98 1.33 [11.33 · 12.65 , 15.31 · 16.63]
+2.70 σ
Expensive
Last 18Y 14.17 1.47 [11.24 · 12.70 , 15.63 · 17.10]
+2.32 σ
Expensive
Last 19Y 14.37 1.61 [11.15 · 12.76 , 15.98 · 17.59]
+1.98 σ
Overvalued
Last 20Y 14.49 1.60 [11.30 · 12.89 , 16.09 · 17.68]
+1.92 σ
Overvalued

P/E Comparison

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

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
Japan 17.56
+2.16 σ +1.74 σ +2.93 σ +1.92 σ
All World 21.10
+1.66 σ +2.46 σ +3.64 σ +4.40 σ
Developed ex-US 17.14
+2.11 σ +1.76 σ +3.00 σ +3.24 σ

Japan Stock Market Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +3.78% 03 Oct
Short Term Price vs SMA50 +2.15% 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.