Canada Stock Market: current P/E Ratio

16.52
Last update: 22 April 2024

The estimated P/E Ratio for Canada Stock Market is 16.52, calculated on 22 April 2024.

Considering the last 5 years, an average P/E interval is [13.14 , 15.35]. 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.

22 April 2024 · P/E Ratio: 16.52
22 April 2024 · P/E Ratio: 16.52 · 1Y Average: 14.09 · 1 Std Dev range: [13.63 , 14.55] · 2 Std Dev range: [13.18 , 15.01]
22 April 2024 · P/E Ratio: 16.52 · 5Y Average: 14.25 · 1 Std Dev range: [13.14 , 15.35] · 2 Std Dev range: [12.04 , 16.45]
22 April 2024 · P/E Ratio: 16.52 · 10Y Average: 14.70 · 1 Std Dev range: [13.73 , 15.66] · 2 Std Dev range: [12.77 , 16.62]
22 April 2024 · P/E Ratio: 16.52 · 20Y Average: 14.13 · 1 Std Dev range: [13.19 , 15.07] · 2 Std Dev range: [12.24 , 16.01]
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: 16.52 · 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
( 16.52 )
Deviation
vs μ
Valuation
Last 1Y 14.09 0.46 [13.18 · 13.63 , 14.55 · 15.01]
+5.30 σ
Expensive
Last 2Y 12.97 1.00 [10.97 · 11.97 , 13.97 · 14.97]
+3.56 σ
Expensive
Last 3Y 13.57 1.06 [11.45 · 12.51 , 14.63 · 15.69]
+2.79 σ
Expensive
Last 4Y 14.23 1.28 [11.67 · 12.95 , 15.51 · 16.79]
+1.79 σ
Overvalued
Last 5Y 14.25 1.10 [12.04 · 13.14 , 15.35 · 16.45]
+2.06 σ
Expensive
Last 6Y 14.06 0.99 [12.07 · 13.06 , 15.05 · 16.04]
+2.48 σ
Expensive
Last 7Y 14.28 0.99 [12.30 · 13.29 , 15.27 · 16.26]
+2.27 σ
Expensive
Last 8Y 14.53 1.06 [12.42 · 13.47 , 15.59 · 16.65]
+1.88 σ
Overvalued
Last 9Y 14.62 1.02 [12.58 · 13.60 , 15.64 · 16.66]
+1.86 σ
Overvalued
Last 10Y 14.70 0.96 [12.77 · 13.73 , 15.66 · 16.62]
+1.90 σ
Overvalued
Last 11Y 14.57 0.95 [12.66 · 13.61 , 15.52 · 16.47]
+2.06 σ
Expensive
Last 12Y 14.37 1.06 [12.25 · 13.31 , 15.43 · 16.49]
+2.03 σ
Expensive
Last 13Y 14.19 1.13 [11.93 · 13.06 , 15.32 · 16.44]
+2.07 σ
Expensive
Last 14Y 14.18 1.07 [12.04 · 13.11 , 15.25 · 16.31]
+2.20 σ
Expensive
Last 15Y 14.19 1.02 [12.16 · 13.18 , 15.21 · 16.22]
+2.30 σ
Expensive
Last 16Y 14.03 1.10 [11.83 · 12.93 , 15.13 · 16.22]
+2.27 σ
Expensive
Last 17Y 14.09 1.08 [11.92 · 13.00 , 15.17 · 16.25]
+2.25 σ
Expensive
Last 18Y 14.10 1.03 [12.03 · 13.06 , 15.13 · 16.16]
+2.35 σ
Expensive
Last 19Y 14.11 0.99 [12.14 · 13.12 , 15.09 · 16.08]
+2.45 σ
Expensive
Last 20Y 14.13 0.94 [12.24 · 13.19 , 15.07 · 16.01]
+2.55 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 16.52
+5.30 σ +2.06 σ +1.90 σ +2.55 σ
All World 19.96
+3.91 σ +2.09 σ +3.44 σ +4.04 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 +5.63% 22 Apr
Short Term Price vs SMA50 +0.01% 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.