Japan Stock Market: current P/E Ratio

16.19
Last update: 05 December 2024

The estimated P/E Ratio for Japan Stock Market is 16.19, calculated on 05 December 2024.

Considering the last 5 years, an average P/E interval is [13.19 , 16.44]. For this reason, the current P/E can be considered Fair

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.

05 December 2024 · P/E Ratio: 16.19
05 December 2024 · P/E Ratio: 16.19 · 1Y Average: 15.88 · 1 Std Dev range: [15.21 , 16.56] · 2 Std Dev range: [14.53 , 17.23]
05 December 2024 · P/E Ratio: 16.19 · 5Y Average: 14.81 · 1 Std Dev range: [13.19 , 16.44] · 2 Std Dev range: [11.56 , 18.06]
05 December 2024 · P/E Ratio: 16.19 · 10Y Average: 14.05 · 1 Std Dev range: [12.82 , 15.27] · 2 Std Dev range: [11.60 , 16.50]
05 December 2024 · P/E Ratio: 16.19 · 20Y Average: 14.46 · 1 Std Dev range: [12.87 , 16.06] · 2 Std Dev range: [11.27 , 17.66]
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: 16.19 · 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
( 16.19 )
Deviation
vs μ
Valuation
Last 1Y 15.88 0.68 [14.53 · 15.21 , 16.56 · 17.23]
+0.46 σ
Fair
Last 2Y 14.54 1.36 [11.82 · 13.18 , 15.90 · 17.26]
+1.22 σ
Overvalued
Last 3Y 13.77 1.28 [11.22 · 12.50 , 15.05 · 16.32]
+1.90 σ
Overvalued
Last 4Y 14.48 1.52 [11.44 · 12.96 , 16.00 · 17.52]
+1.13 σ
Overvalued
Last 5Y 14.81 1.62 [11.56 · 13.19 , 16.44 · 18.06]
+0.85 σ
Fair
Last 6Y 14.31 1.62 [11.07 · 12.69 , 15.93 · 17.56]
+1.16 σ
Overvalued
Last 7Y 14.11 1.52 [11.06 · 12.59 , 15.63 · 17.15]
+1.37 σ
Overvalued
Last 8Y 14.10 1.34 [11.42 · 12.76 , 15.44 · 16.77]
+1.56 σ
Overvalued
Last 9Y 13.95 1.28 [11.40 · 12.67 , 15.23 · 16.50]
+1.76 σ
Overvalued
Last 10Y 14.05 1.22 [11.60 · 12.82 , 15.27 · 16.50]
+1.75 σ
Overvalued
Last 11Y 13.95 1.12 [11.70 · 12.82 , 15.07 · 16.20]
+2.00 σ
Overvalued
Last 12Y 13.97 1.10 [11.77 · 12.87 , 15.07 · 16.17]
+2.02 σ
Expensive
Last 13Y 13.78 1.12 [11.55 · 12.67 , 14.90 · 16.01]
+2.16 σ
Expensive
Last 14Y 13.67 1.11 [11.46 · 12.57 , 14.78 · 15.89]
+2.27 σ
Expensive
Last 15Y 13.81 1.18 [11.45 · 12.63 , 14.99 · 16.17]
+2.02 σ
Expensive
Last 16Y 14.01 1.36 [11.28 · 12.65 , 15.37 · 16.74]
+1.60 σ
Overvalued
Last 17Y 13.96 1.33 [11.30 · 12.63 , 15.29 · 16.62]
+1.68 σ
Overvalued
Last 18Y 14.13 1.44 [11.25 · 12.69 , 15.57 · 17.01]
+1.43 σ
Overvalued
Last 19Y 14.34 1.60 [11.14 · 12.74 , 15.93 · 17.53]
+1.16 σ
Overvalued
Last 20Y 14.46 1.60 [11.27 · 12.87 , 16.06 · 17.66]
+1.08 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 16.19
+0.46 σ +0.85 σ +1.75 σ +1.08 σ
All World 21.29
+1.49 σ +2.46 σ +3.55 σ +4.36 σ
Developed ex-US 16.54
+1.39 σ +1.25 σ +2.28 σ +2.68 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 +2.65% 05 Dec
Short Term Price vs SMA50 +2.33% 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.