Australia Stock Market: current P/E Ratio

19.17
Last update: 22 April 2024

The estimated P/E Ratio for Australia Stock Market is 19.17, calculated on 22 April 2024.

Considering the last 5 years, an average P/E interval is [14.50 , 17.43]. For this reason, the current P/E can be considered Expensive

P/E Ratio is calculated on the EWA Etf, whose benchmark is the Australia 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 Australia Stock Market P/E Ratio has changed over time. Furthermore, for some trailing timeframes, you can view the average P/E and standard deviation.

22 April 2024 · P/E Ratio: 19.17
22 April 2024 · P/E Ratio: 19.17 · 1Y Average: 14.57 · 1 Std Dev range: [13.70 , 15.43] · 2 Std Dev range: [12.83 , 16.30]
22 April 2024 · P/E Ratio: 19.17 · 5Y Average: 15.97 · 1 Std Dev range: [14.50 , 17.43] · 2 Std Dev range: [13.04 , 18.89]
22 April 2024 · P/E Ratio: 19.17 · 10Y Average: 15.48 · 1 Std Dev range: [14.54 , 16.42] · 2 Std Dev range: [13.59 , 17.36]
22 April 2024 · P/E Ratio: 19.17 · 20Y Average: 14.42 · 1 Std Dev range: [13.20 , 15.63] · 2 Std Dev range: [11.99 , 16.85]
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".
22 April 2024 · P/E Ratio: 19.17 · 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
( 19.17 )
Deviation
vs μ
Valuation
Last 1Y 14.57 0.87 [12.83 · 13.70 , 15.43 · 16.30]
+5.31 σ
Expensive
Last 2Y 14.12 0.66 [12.80 · 13.46 , 14.78 · 15.44]
+7.65 σ
Expensive
Last 3Y 14.97 1.22 [12.53 · 13.75 , 16.19 · 17.42]
+3.43 σ
Expensive
Last 4Y 15.81 1.65 [12.52 · 14.17 , 17.46 · 19.11]
+2.04 σ
Expensive
Last 5Y 15.97 1.46 [13.04 · 14.50 , 17.43 · 18.90]
+2.19 σ
Expensive
Last 6Y 15.65 1.30 [13.05 · 14.35 , 16.95 · 18.26]
+2.70 σ
Expensive
Last 7Y 15.64 1.13 [13.37 · 14.50 , 16.77 · 17.90]
+3.12 σ
Expensive
Last 8Y 15.63 0.97 [13.68 · 14.65 , 16.60 · 17.58]
+3.63 σ
Expensive
Last 9Y 15.57 0.93 [13.72 · 14.64 , 16.49 · 17.42]
+3.89 σ
Expensive
Last 10Y 15.48 0.94 [13.59 · 14.54 , 16.42 · 17.36]
+3.92 σ
Expensive
Last 11Y 15.29 0.96 [13.36 · 14.32 , 16.25 · 17.22]
+4.02 σ
Expensive
Last 12Y 15.11 1.03 [13.06 · 14.09 , 16.14 · 17.16]
+3.96 σ
Expensive
Last 13Y 14.86 1.19 [12.48 · 13.67 , 16.04 · 17.23]
+3.63 σ
Expensive
Last 14Y 14.62 1.35 [11.92 · 13.27 , 15.97 · 17.31]
+3.37 σ
Expensive
Last 15Y 14.67 1.29 [12.10 · 13.38 , 15.96 · 17.25]
+3.49 σ
Expensive
Last 16Y 14.43 1.44 [11.56 · 12.99 , 15.87 · 17.30]
+3.30 σ
Expensive
Last 17Y 14.45 1.41 [11.64 · 13.04 , 15.85 · 17.26]
+3.36 σ
Expensive
Last 18Y 14.41 1.34 [11.72 · 13.07 , 15.76 · 17.10]
+3.54 σ
Expensive
Last 19Y 14.40 1.28 [11.83 · 13.11 , 15.68 · 16.96]
+3.72 σ
Expensive
Last 20Y 14.42 1.21 [11.99 · 13.20 , 15.63 · 16.85]
+3.91 σ
Expensive

P/E Comparison

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

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
Australia 19.17
+5.31 σ +2.19 σ +3.92 σ +3.91 σ
All World 19.96
+3.91 σ +2.09 σ +3.44 σ +4.04 σ
Developed ex-US 14.67
+2.53 σ +0.16 σ +0.51 σ +1.03 σ

Australia Stock Market Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +3.45% 22 Apr
Short Term Price vs SMA50 -1.80% 22 Apr
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.