United States Stock Market: current P/E Ratio

25.81
Last update: 03 October 2024

The estimated P/E Ratio for United States Stock Market is 25.81, calculated on 03 October 2024.

Considering the last 5 years, an average P/E interval is [19.02 , 22.67]. 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.

03 October 2024 · P/E Ratio: 25.81
03 October 2024 · P/E Ratio: 25.81 · 1Y Average: 23.18 · 1 Std Dev range: [21.56 , 24.79] · 2 Std Dev range: [19.95 , 26.41]
03 October 2024 · P/E Ratio: 25.81 · 5Y Average: 20.85 · 1 Std Dev range: [19.02 , 22.67] · 2 Std Dev range: [17.20 , 24.49]
03 October 2024 · P/E Ratio: 25.81 · 10Y Average: 18.61 · 1 Std Dev range: [16.55 , 20.67] · 2 Std Dev range: [14.49 , 22.73]
03 October 2024 · P/E Ratio: 25.81 · 20Y Average: 16.09 · 1 Std Dev range: [13.88 , 18.30] · 2 Std Dev range: [11.66 , 20.52]
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: 25.81 · 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
( 25.81 )
Deviation
vs μ
Valuation
Last 1Y 23.18 1.62 [19.95 · 21.56 , 24.79 · 26.41]
+1.63 σ
Overvalued
Last 2Y 21.09 2.25 [16.58 · 18.83 , 23.34 · 25.59]
+2.10 σ
Expensive
Last 3Y 20.42 1.90 [16.61 · 18.52 , 22.33 · 24.23]
+2.83 σ
Expensive
Last 4Y 20.95 1.66 [17.63 · 19.29 , 22.61 · 24.27]
+2.92 σ
Expensive
Last 5Y 20.85 1.82 [17.20 · 19.02 , 22.67 · 24.49]
+2.72 σ
Expensive
Last 6Y 19.99 2.21 [15.57 · 17.78 , 22.19 · 24.40]
+2.64 σ
Expensive
Last 7Y 19.51 2.23 [15.05 · 17.28 , 21.74 · 23.97]
+2.83 σ
Expensive
Last 8Y 19.14 2.11 [14.93 · 17.03 , 21.25 · 23.36]
+3.16 σ
Expensive
Last 9Y 18.81 2.08 [14.65 · 16.73 , 20.89 · 22.97]
+3.37 σ
Expensive
Last 10Y 18.61 2.06 [14.49 · 16.55 , 20.67 · 22.73]
+3.50 σ
Expensive
Last 11Y 18.24 2.05 [14.13 · 16.19 , 20.29 · 22.35]
+3.69 σ
Expensive
Last 12Y 17.92 2.10 [13.71 · 15.82 , 20.02 · 22.13]
+3.75 σ
Expensive
Last 13Y 17.50 2.24 [13.03 · 15.26 , 19.73 · 21.97]
+3.72 σ
Expensive
Last 14Y 17.08 2.46 [12.17 · 14.62 , 19.54 · 22.00]
+3.55 σ
Expensive
Last 15Y 16.85 2.53 [11.79 · 14.32 , 19.38 · 21.91]
+3.54 σ
Expensive
Last 16Y 16.52 2.56 [11.39 · 13.96 , 19.08 · 21.64]
+3.63 σ
Expensive
Last 17Y 16.30 2.54 [11.22 · 13.76 , 18.85 · 21.39]
+3.74 σ
Expensive
Last 18Y 16.17 2.40 [11.38 · 13.77 , 18.57 · 20.97]
+4.02 σ
Expensive
Last 19Y 16.07 2.30 [11.46 · 13.77 , 18.37 · 20.68]
+4.23 σ
Expensive
Last 20Y 16.09 2.21 [11.66 · 13.88 , 18.30 · 20.52]
+4.39 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 25.81
+1.63 σ +2.72 σ +3.50 σ +4.39 σ
All World 21.10
+1.66 σ +2.46 σ +3.64 σ +4.40 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 +8.07% 03 Oct
Short Term Price vs SMA50 +2.52% 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.