China Stock Market: current P/E Ratio

9.72
Last update: 17 January 2025

The estimated P/E Ratio for China Stock Market is 9.72, calculated on 17 January 2025.

Considering the last 5 years, an average P/E interval is [9.01 , 13.19]. For this reason, the current P/E can be considered Fair

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

17 January 2025 · P/E Ratio: 9.72
17 January 2025 · P/E Ratio: 9.72 · 1Y Average: 8.99 · 1 Std Dev range: [8.62 , 9.36] · 2 Std Dev range: [8.25 , 9.73]
17 January 2025 · P/E Ratio: 9.72 · 5Y Average: 11.10 · 1 Std Dev range: [9.01 , 13.19] · 2 Std Dev range: [6.92 , 15.29]
17 January 2025 · P/E Ratio: 9.72 · 10Y Average: 11.07 · 1 Std Dev range: [9.64 , 12.50] · 2 Std Dev range: [8.20 , 13.94]
17 January 2025 · P/E Ratio: 9.72 · 20Y Average: 11.03 · 1 Std Dev range: [9.35 , 12.72] · 2 Std Dev range: [7.66 , 14.41]
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".
17 January 2025 · P/E Ratio: 9.72 · 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
( 9.72 )
Deviation
vs μ
Valuation
Last 1Y 8.99 0.37 [8.25 · 8.62 , 9.36 · 9.73]
+1.96 σ
Overvalued
Last 2Y 9.03 0.34 [8.36 · 8.70 , 9.37 · 9.70]
+2.05 σ
Expensive
Last 3Y 9.32 0.64 [8.04 · 8.68 , 9.95 · 10.59]
+0.63 σ
Fair
Last 4Y 10.24 1.59 [7.05 · 8.64 , 11.83 · 13.43]
-0.33 σ
Fair
Last 5Y 11.10 2.09 [6.92 · 9.01 , 13.19 · 15.29]
-0.66 σ
Fair
Last 6Y 10.99 1.77 [7.45 · 9.22 , 12.76 · 14.53]
-0.72 σ
Fair
Last 7Y 11.08 1.66 [7.76 · 9.42 , 12.73 · 14.39]
-0.82 σ
Fair
Last 8Y 11.26 1.56 [8.14 · 9.70 , 12.82 · 14.38]
-0.99 σ
Fair
Last 9Y 11.19 1.44 [8.32 · 9.76 , 12.63 · 14.07]
-1.03 σ
Undervalued
Last 10Y 11.07 1.43 [8.20 · 9.64 , 12.50 · 13.94]
-0.94 σ
Fair
Last 11Y 10.77 1.45 [7.86 · 9.31 , 12.22 · 13.67]
-0.72 σ
Fair
Last 12Y 10.58 1.45 [7.67 · 9.12 , 12.03 · 13.48]
-0.59 σ
Fair
Last 13Y 10.38 1.42 [7.54 · 8.96 , 11.80 · 13.22]
-0.47 σ
Fair
Last 14Y 10.32 1.38 [7.55 · 8.94 , 11.70 · 13.09]
-0.44 σ
Fair
Last 15Y 10.52 1.46 [7.61 · 9.07 , 11.98 · 13.44]
-0.55 σ
Fair
Last 16Y 10.67 1.54 [7.59 · 9.13 , 12.20 · 13.74]
-0.62 σ
Fair
Last 17Y 10.73 1.60 [7.53 · 9.13 , 12.33 · 13.93]
-0.63 σ
Fair
Last 18Y 10.96 1.76 [7.43 · 9.20 , 12.72 · 14.48]
-0.70 σ
Fair
Last 19Y 11.04 1.74 [7.55 · 9.30 , 12.78 · 14.53]
-0.76 σ
Fair
Last 20Y 11.03 1.69 [7.66 · 9.35 , 12.72 · 14.41]
-0.78 σ
Fair

P/E Comparison

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

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
China 9.72
+1.96 σ -0.66 σ -0.94 σ -0.78 σ
All World 21.60
+1.63 σ +2.57 σ +3.64 σ +4.47 σ
Emerging Markets 14.08
+0.43 σ +0.30 σ +0.84 σ +1.19 σ

China Stock Market Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +7.80% 17 Jan
Short Term Price vs SMA50 -0.45% 17 Jan
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.