Canada Stock Market: current P/E Ratio

17.61
Last update: 18 July 2024

The estimated P/E Ratio for Canada Stock Market is 17.61, calculated on 18 July 2024.

Considering the last 5 years, an average P/E interval is [13.17 , 15.65]. For this reason, the current P/E can be considered Expensive

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

18 July 2024 · P/E Ratio: 17.61
18 July 2024 · P/E Ratio: 17.61 · 1Y Average: 14.97 · 1 Std Dev range: [13.94 , 16.00] · 2 Std Dev range: [12.92 , 17.02]
18 July 2024 · P/E Ratio: 17.61 · 5Y Average: 14.41 · 1 Std Dev range: [13.17 , 15.65] · 2 Std Dev range: [11.93 , 16.89]
18 July 2024 · P/E Ratio: 17.61 · 10Y Average: 14.75 · 1 Std Dev range: [13.73 , 15.76] · 2 Std Dev range: [12.72 , 16.77]
18 July 2024 · P/E Ratio: 17.61 · 20Y Average: 14.15 · 1 Std Dev range: [13.18 , 15.11] · 2 Std Dev range: [12.22 , 16.08]
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".
18 July 2024 · P/E Ratio: 17.61 · 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
( 17.61 )
Deviation
vs μ
Valuation
Last 1Y 14.97 1.03 [12.92 · 13.94 , 16.00 · 17.02]
+2.57 σ
Expensive
Last 2Y 13.46 1.35 [10.76 · 12.11 , 14.81 · 16.16]
+3.07 σ
Expensive
Last 3Y 13.57 1.06 [11.45 · 12.51 , 14.63 · 15.69]
+3.81 σ
Expensive
Last 4Y 14.28 1.32 [11.63 · 12.95 , 15.60 · 16.93]
+2.51 σ
Expensive
Last 5Y 14.41 1.24 [11.93 · 13.17 , 15.65 · 16.89]
+2.57 σ
Expensive
Last 6Y 14.17 1.11 [11.95 · 13.06 , 15.28 · 16.39]
+3.10 σ
Expensive
Last 7Y 14.31 1.03 [12.24 · 13.27 , 15.34 · 16.37]
+3.19 σ
Expensive
Last 8Y 14.54 1.06 [12.41 · 13.47 , 15.60 · 16.66]
+2.89 σ
Expensive
Last 9Y 14.62 1.03 [12.57 · 13.60 , 15.65 · 16.68]
+2.91 σ
Expensive
Last 10Y 14.75 1.01 [12.72 · 13.73 , 15.76 · 16.77]
+2.83 σ
Expensive
Last 11Y 14.67 0.95 [12.78 · 13.72 , 15.62 · 16.57]
+3.10 σ
Expensive
Last 12Y 14.47 1.05 [12.38 · 13.43 , 15.52 · 16.57]
+2.99 σ
Expensive
Last 13Y 14.25 1.16 [11.92 · 13.08 , 15.41 · 16.58]
+2.89 σ
Expensive
Last 14Y 14.23 1.10 [12.02 · 13.12 , 15.33 · 16.44]
+3.06 σ
Expensive
Last 15Y 14.25 1.04 [12.16 · 13.20 , 15.29 · 16.34]
+3.21 σ
Expensive
Last 16Y 14.08 1.13 [11.83 · 12.96 , 15.21 · 16.34]
+3.13 σ
Expensive
Last 17Y 14.10 1.10 [11.90 · 13.00 , 15.19 · 16.29]
+3.20 σ
Expensive
Last 18Y 14.13 1.06 [12.01 · 13.07 , 15.19 · 16.25]
+3.29 σ
Expensive
Last 19Y 14.14 1.01 [12.11 · 13.13 , 15.16 · 16.17]
+3.42 σ
Expensive
Last 20Y 14.15 0.97 [12.22 · 13.18 , 15.12 · 16.08]
+3.58 σ
Expensive

P/E Comparison

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

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
Canada 17.61
+2.57 σ +2.57 σ +2.83 σ +3.58 σ
All World 20.63
+2.80 σ +2.32 σ +3.65 σ +4.33 σ

Canada Stock Market Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +5.99% 18 Jul
Short Term Price vs SMA50 +1.92% 18 Jul
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.