United States Stock Market: current P/E Ratio

26.42
Last update: 05 December 2024

The estimated P/E Ratio for United States Stock Market is 26.42, calculated on 05 December 2024.

Considering the last 5 years, an average P/E interval is [19.38 , 22.91]. For this reason, the current P/E can be considered Expensive

P/E Ratio is calculated on the VTI Etf, whose benchmark is the United States 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 United States 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: 26.42
05 December 2024 · P/E Ratio: 26.42 · 1Y Average: 24.34 · 1 Std Dev range: [23.16 , 25.51] · 2 Std Dev range: [21.99 , 26.69]
05 December 2024 · P/E Ratio: 26.42 · 5Y Average: 21.15 · 1 Std Dev range: [19.38 , 22.91] · 2 Std Dev range: [17.62 , 24.67]
05 December 2024 · P/E Ratio: 26.42 · 10Y Average: 18.75 · 1 Std Dev range: [16.63 , 20.87] · 2 Std Dev range: [14.51 , 22.99]
05 December 2024 · P/E Ratio: 26.42 · 20Y Average: 16.15 · 1 Std Dev range: [13.86 , 18.44] · 2 Std Dev range: [11.57 , 20.73]
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: 26.42 · 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
( 26.42 )
Deviation
vs μ
Valuation
Last 1Y 24.34 1.18 [21.99 · 23.16 , 25.51 · 26.69]
+1.77 σ
Overvalued
Last 2Y 22.00 2.15 [17.71 · 19.85 , 24.14 · 26.29]
+2.06 σ
Expensive
Last 3Y 20.65 2.18 [16.30 · 18.48 , 22.83 · 25.00]
+2.65 σ
Expensive
Last 4Y 21.08 1.81 [17.47 · 19.28 , 22.89 · 24.70]
+2.95 σ
Expensive
Last 5Y 21.15 1.76 [17.62 · 19.38 , 22.91 · 24.67]
+2.99 σ
Expensive
Last 6Y 20.24 2.19 [15.87 · 18.06 , 22.43 · 24.61]
+2.83 σ
Expensive
Last 7Y 19.67 2.30 [15.06 · 17.36 , 21.97 · 24.28]
+2.93 σ
Expensive
Last 8Y 19.31 2.16 [14.99 · 17.15 , 21.47 · 23.63]
+3.29 σ
Expensive
Last 9Y 18.96 2.14 [14.67 · 16.81 , 21.10 · 23.24]
+3.48 σ
Expensive
Last 10Y 18.75 2.12 [14.51 · 16.63 , 20.87 · 22.99]
+3.62 σ
Expensive
Last 11Y 18.38 2.11 [14.15 · 16.26 , 20.49 · 22.60]
+3.81 σ
Expensive
Last 12Y 18.05 2.15 [13.75 · 15.90 , 20.21 · 22.36]
+3.89 σ
Expensive
Last 13Y 17.64 2.25 [13.14 · 15.39 , 19.90 · 22.15]
+3.89 σ
Expensive
Last 14Y 17.23 2.48 [12.27 · 14.75 , 19.70 · 22.18]
+3.71 σ
Expensive
Last 15Y 16.95 2.60 [11.76 · 14.36 , 19.55 · 22.15]
+3.64 σ
Expensive
Last 16Y 16.65 2.59 [11.46 · 14.06 , 19.24 · 21.83]
+3.77 σ
Expensive
Last 17Y 16.39 2.62 [11.15 · 13.77 , 19.01 · 21.62]
+3.83 σ
Expensive
Last 18Y 16.26 2.47 [11.31 · 13.78 , 18.73 · 21.21]
+4.11 σ
Expensive
Last 19Y 16.15 2.38 [11.40 · 13.77 , 18.53 · 20.90]
+4.32 σ
Expensive
Last 20Y 16.15 2.29 [11.57 · 13.86 , 18.44 · 20.73]
+4.48 σ
Expensive

P/E Comparison

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

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
United States 26.42
+1.77 σ +2.99 σ +3.62 σ +4.48 σ
All World 21.29
+1.49 σ +2.46 σ +3.55 σ +4.36 σ

United States Stock Market Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +11.66% 05 Dec
Short Term Price vs SMA50 +4.16% 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.