China Stock Market: current P/E Ratio

8.54
Last update: 22 April 2024

The estimated P/E Ratio for China Stock Market is 8.54, calculated on 22 April 2024.

Considering the last 5 years, an average P/E interval is [9.48 , 13.32]. For this reason, the current P/E can be considered Undervalued

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.

22 April 2024 · P/E Ratio: 8.54
22 April 2024 · P/E Ratio: 8.54 · 1Y Average: 8.81 · 1 Std Dev range: [8.37 , 9.25] · 2 Std Dev range: [7.93 , 9.69]
22 April 2024 · P/E Ratio: 8.54 · 5Y Average: 11.40 · 1 Std Dev range: [9.48 , 13.32] · 2 Std Dev range: [7.56 , 15.24]
22 April 2024 · P/E Ratio: 8.54 · 10Y Average: 11.02 · 1 Std Dev range: [9.53 , 12.51] · 2 Std Dev range: [8.05 , 13.99]
22 April 2024 · P/E Ratio: 8.54 · 20Y Average: 11.11 · 1 Std Dev range: [9.46 , 12.76] · 2 Std Dev range: [7.81 , 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".
22 April 2024 · P/E Ratio: 8.54 · 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
( 8.54 )
Deviation
vs μ
Valuation
Last 1Y 8.81 0.44 [7.93 · 8.37 , 9.25 · 9.69]
-0.62 σ
Fair
Last 2Y 9.28 0.68 [7.92 · 8.60 , 9.97 · 10.65]
-1.10 σ
Undervalued
Last 3Y 10.17 1.43 [7.32 · 8.74 , 11.60 · 13.02]
-1.15 σ
Undervalued
Last 4Y 11.34 2.22 [6.91 · 9.13 , 13.56 · 15.78]
-1.27 σ
Undervalued
Last 5Y 11.40 1.92 [7.56 · 9.48 , 13.32 · 15.24]
-1.49 σ
Undervalued
Last 6Y 11.25 1.66 [7.94 · 9.60 , 12.91 · 14.56]
-1.64 σ
Undervalued
Last 7Y 11.55 1.60 [8.36 · 9.95 , 13.15 · 14.75]
-1.89 σ
Undervalued
Last 8Y 11.48 1.40 [8.68 · 10.08 , 12.88 · 14.27]
-2.10 σ
Cheap
Last 9Y 11.24 1.40 [8.43 · 9.83 , 12.64 · 14.05]
-1.93 σ
Undervalued
Last 10Y 11.02 1.49 [8.05 · 9.53 , 12.51 · 13.99]
-1.67 σ
Undervalued
Last 11Y 10.71 1.50 [7.72 · 9.22 , 12.21 · 13.71]
-1.45 σ
Undervalued
Last 12Y 10.53 1.49 [7.56 · 9.05 , 12.02 · 13.50]
-1.34 σ
Undervalued
Last 13Y 10.38 1.43 [7.51 · 8.94 , 11.81 · 13.25]
-1.29 σ
Undervalued
Last 14Y 10.50 1.42 [7.66 · 9.08 , 11.93 · 13.35]
-1.38 σ
Undervalued
Last 15Y 10.79 1.59 [7.60 · 9.20 , 12.38 · 13.97]
-1.41 σ
Undervalued
Last 16Y 10.76 1.59 [7.58 · 9.17 , 12.35 · 13.95]
-1.40 σ
Undervalued
Last 17Y 11.01 1.76 [7.50 · 9.25 , 12.76 · 14.52]
-1.41 σ
Undervalued
Last 18Y 11.13 1.77 [7.58 · 9.35 , 12.90 · 14.67]
-1.46 σ
Undervalued
Last 19Y 11.09 1.70 [7.68 · 9.39 , 12.79 · 14.50]
-1.50 σ
Undervalued
Last 20Y 11.11 1.65 [7.81 · 9.46 , 12.76 · 14.41]
-1.56 σ
Undervalued

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 8.54
-0.62 σ -1.49 σ -1.67 σ -1.56 σ
All World 19.96
+3.91 σ +2.09 σ +3.44 σ +4.04 σ
Emerging Markets 13.32
+2.01 σ -0.04 σ +0.27 σ +0.64 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 -3.26% 22 Apr
Short Term Price vs SMA50 +2.57% 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.