United States Stock Market: current P/E Ratio

23.48
Last update: 24 May 2024

The estimated P/E Ratio for United States Stock Market is 23.48, calculated on 24 May 2024.

Considering the last 5 years, an average P/E interval is [18.31 , 22.12]. For this reason, the current P/E can be considered Overvalued

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.

24 May 2024 · P/E Ratio: 23.48
24 May 2024 · P/E Ratio: 23.48 · 1Y Average: 21.45 · 1 Std Dev range: [20.37 , 22.52] · 2 Std Dev range: [19.29 , 23.60]
24 May 2024 · P/E Ratio: 23.48 · 5Y Average: 20.22 · 1 Std Dev range: [18.31 , 22.12] · 2 Std Dev range: [16.40 , 24.03]
24 May 2024 · P/E Ratio: 23.48 · 10Y Average: 18.26 · 1 Std Dev range: [16.35 , 20.18] · 2 Std Dev range: [14.44 , 22.09]
24 May 2024 · P/E Ratio: 23.48 · 20Y Average: 15.95 · 1 Std Dev range: [13.93 , 17.97] · 2 Std Dev range: [11.91 , 19.99]
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: 23.48 · 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
( 23.48 )
Deviation
vs μ
Valuation
Last 1Y 21.45 1.08 [19.29 · 20.37 , 22.53 · 23.60]
+1.88 σ
Overvalued
Last 2Y 19.53 1.80 [15.94 · 17.73 , 21.32 · 23.12]
+2.20 σ
Expensive
Last 3Y 20.17 1.60 [16.98 · 18.58 , 21.77 · 23.37]
+2.07 σ
Expensive
Last 4Y 20.86 1.57 [17.73 · 19.29 , 22.43 · 23.99]
+1.67 σ
Overvalued
Last 5Y 20.22 1.91 [16.40 · 18.31 , 22.12 · 24.03]
+1.71 σ
Overvalued
Last 6Y 19.42 2.18 [15.07 · 17.25 , 21.60 · 23.78]
+1.86 σ
Overvalued
Last 7Y 19.12 2.05 [15.03 · 17.08 , 21.17 · 23.22]
+2.13 σ
Expensive
Last 8Y 18.78 1.93 [14.91 · 16.84 , 20.71 · 22.65]
+2.43 σ
Expensive
Last 9Y 18.48 1.90 [14.69 · 16.59 , 20.38 · 22.28]
+2.63 σ
Expensive
Last 10Y 18.26 1.91 [14.44 · 16.35 , 20.18 · 22.09]
+2.72 σ
Expensive
Last 11Y 17.91 1.92 [14.08 · 15.99 , 19.83 · 21.74]
+2.90 σ
Expensive
Last 12Y 17.58 2.00 [13.57 · 15.58 , 19.58 · 21.59]
+2.94 σ
Expensive
Last 13Y 17.12 2.21 [12.71 · 14.91 , 19.33 · 21.54]
+2.88 σ
Expensive
Last 14Y 16.73 2.40 [11.93 · 14.33 , 19.13 · 21.53]
+2.81 σ
Expensive
Last 15Y 16.57 2.38 [11.81 · 14.19 , 18.95 · 21.33]
+2.90 σ
Expensive
Last 16Y 16.22 2.44 [11.35 · 13.79 , 18.66 · 21.10]
+2.98 σ
Expensive
Last 17Y 16.09 2.35 [11.39 · 13.74 , 18.44 · 20.79]
+3.14 σ
Expensive
Last 18Y 15.96 2.22 [11.53 · 13.74 , 18.18 · 20.39]
+3.39 σ
Expensive
Last 19Y 15.90 2.11 [11.69 · 13.79 , 18.01 · 20.11]
+3.60 σ
Expensive
Last 20Y 15.95 2.02 [11.91 · 13.93 , 17.97 · 19.99]
+3.73 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 23.48
+1.88 σ +1.71 σ +2.72 σ +3.73 σ
All World 19.49
+2.86 σ +1.68 σ +2.95 σ +3.66 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 +11.14% 24 May
Short Term Price vs SMA50 +2.40% 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.