Tracking the Price-to-Earnings (PE) ratios of major stock indexes provides valuable insights into market conditions. Below, you'll find updated PE ratios for key US and global stock indexes, helping investors analyze trends and valuations.
Highest P/E Ratio:
Highest deviation vs 10Y Avg P/E:
MAJOR STOCK INDEXES P/E RATIO
Broad US and Global Stock Indexes
Last Update: 25 March 2025
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P/E Evaluation
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Historical P/E Average
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P/E Deviation vs Avg
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Trend Margin |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Major Indexes | P/E Ratio▾ | 5 Years | 10 Years | 20 Years | 5 Years | 10 Years | 20 Years | 5 Years | 10 Years | 20 Years | vs SMA-200 | |||
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QQQ | Nasdaq 100 | 33.52 |
Overvalued
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Expensive
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Expensive
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29.27 | 25.15 | 21.99 |
+1.50 σ
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+2.23 σ
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+2.40 σ
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-0.16% | 25 Mar |
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SPY | S&P 500 | 26.31 |
Expensive
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Expensive
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Expensive
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21.50 | 18.65 | 15.92 |
+2.01 σ
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+3.22 σ
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+4.39 σ
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+0.26% | 25 Mar |
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DIA | Dow Jones | 24.62 |
Fair
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Overvalued
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Expensive
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22.20 | 19.53 | 17.04 |
+0.79 σ
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+1.90 σ
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+3.25 σ
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+1.14% | 25 Mar |
| URTH | MSCI World | 23.57 |
Expensive
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Expensive
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Expensive
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19.92 | 17.73 | 15.40 |
+2.13 σ
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+3.00 σ
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+3.92 σ
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+1.80% | 25 Mar | |
| VT | All World | 21.18 |
Expensive
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Expensive
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Expensive
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17.99 | 16.38 | 14.54 |
+2.05 σ
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+3.14 σ
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+4.06 σ
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+1.30% | 25 Mar | |
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IWM | Russell 2000 | 17.55 |
Overvalued
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Fair
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Overvalued
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15.18 | 16.16 | 16.12 |
+1.42 σ
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+0.94 σ
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+1.03 σ
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-4.97% | 25 Mar |
| EFA | MSCI EAFE | 16.86 |
Overvalued
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Expensive
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Expensive
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15.01 | 14.51 | 13.54 |
+1.33 σ
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+2.40 σ
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+2.91 σ
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+5.21% | 25 Mar | |
| EEM | Emerging Markets | 14.41 |
Fair
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Overvalued
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Overvalued
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13.64 | 13.32 | 12.78 |
+0.50 σ
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+1.15 σ
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+1.46 σ
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+2.60% | 25 Mar | |
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".
The Trend is considered positive if the ETF price is higher than the 200-day moving average (SMA).
MAJOR STOCK INDEXES - EVALUATION DIAGRAM
Long Term Trend and P/E Ratio
Last Update: 25 March 2025