Japan Stock Market: current P/E Ratio

16.07
Last update: 24 May 2024

The estimated P/E Ratio for Japan Stock Market is 16.07, calculated on 24 May 2024.

Considering the last 5 years, an average P/E interval is [12.81 , 15.88]. 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.

24 May 2024 · P/E Ratio: 16.07
24 May 2024 · P/E Ratio: 16.07 · 1Y Average: 14.66 · 1 Std Dev range: [14.07 , 15.25] · 2 Std Dev range: [13.48 , 15.83]
24 May 2024 · P/E Ratio: 16.07 · 5Y Average: 14.35 · 1 Std Dev range: [12.81 , 15.88] · 2 Std Dev range: [11.28 , 17.41]
24 May 2024 · P/E Ratio: 16.07 · 10Y Average: 13.87 · 1 Std Dev range: [12.81 , 14.93] · 2 Std Dev range: [11.75 , 15.98]
24 May 2024 · P/E Ratio: 16.07 · 20Y Average: 14.49 · 1 Std Dev range: [12.89 , 16.09] · 2 Std Dev range: [11.29 , 17.69]
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: 16.07 · 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
( 16.07 )
Deviation
vs μ
Valuation
Last 1Y 14.66 0.59 [13.48 · 14.07 , 15.25 · 15.83]
+2.41 σ
Expensive
Last 2Y 13.44 1.01 [11.43 · 12.44 , 14.45 · 15.46]
+2.61 σ
Expensive
Last 3Y 13.81 1.16 [11.48 · 12.64 , 14.97 · 16.14]
+1.95 σ
Overvalued
Last 4Y 14.61 1.56 [11.49 · 13.05 , 16.18 · 17.74]
+0.93 σ
Fair
Last 5Y 14.35 1.53 [11.28 · 12.81 , 15.88 · 17.41]
+1.13 σ
Overvalued
Last 6Y 13.92 1.45 [11.02 · 12.47 , 15.36 · 16.81]
+1.49 σ
Overvalued
Last 7Y 13.94 1.29 [11.35 · 12.65 , 15.23 · 16.52]
+1.65 σ
Overvalued
Last 8Y 13.85 1.15 [11.54 · 12.70 , 15.00 · 16.15]
+1.94 σ
Overvalued
Last 9Y 13.84 1.11 [11.61 · 12.73 , 14.96 · 16.07]
+2.00 σ
Expensive
Last 10Y 13.87 1.06 [11.75 · 12.81 , 14.93 · 15.98]
+2.08 σ
Expensive
Last 11Y 13.89 1.01 [11.86 · 12.88 , 14.90 · 15.92]
+2.15 σ
Expensive
Last 12Y 13.75 1.03 [11.70 · 12.72 , 14.78 · 15.81]
+2.25 σ
Expensive
Last 13Y 13.61 1.01 [11.58 · 12.59 , 14.62 · 15.64]
+2.43 σ
Expensive
Last 14Y 13.59 0.99 [11.60 · 12.60 , 14.58 · 15.58]
+2.50 σ
Expensive
Last 15Y 13.86 1.25 [11.37 · 12.62 , 15.11 · 16.35]
+1.78 σ
Overvalued
Last 16Y 13.90 1.26 [11.37 · 12.63 , 15.16 · 16.43]
+1.72 σ
Overvalued
Last 17Y 13.98 1.32 [11.33 · 12.65 , 15.30 · 16.63]
+1.58 σ
Overvalued
Last 18Y 14.17 1.47 [11.23 · 12.70 , 15.64 · 17.10]
+1.30 σ
Overvalued
Last 19Y 14.33 1.56 [11.22 · 12.77 , 15.88 · 17.44]
+1.12 σ
Overvalued
Last 20Y 14.49 1.60 [11.29 · 12.89 , 16.09 · 17.69]
+0.99 σ
Fair

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 16.07
+2.41 σ +1.13 σ +2.08 σ +0.99 σ
All World 19.49
+2.86 σ +1.68 σ +2.95 σ +3.66 σ
Developed ex-US 16.13
+5.00 σ +1.32 σ +2.30 σ +2.35 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 +5.87% 24 May
Short Term Price vs SMA50 -0.80% 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.