China Stock Market: current P/E Ratio

8.97
Last update: 18 July 2024

The estimated P/E Ratio for China Stock Market is 8.97, calculated on 18 July 2024.

Considering the last 5 years, an average P/E interval is [9.27 , 13.27]. 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.

18 July 2024 · P/E Ratio: 8.97
18 July 2024 · P/E Ratio: 8.97 · 1Y Average: 8.90 · 1 Std Dev range: [8.52 , 9.27] · 2 Std Dev range: [8.14 , 9.65]
18 July 2024 · P/E Ratio: 8.97 · 5Y Average: 11.27 · 1 Std Dev range: [9.27 , 13.27] · 2 Std Dev range: [7.27 , 15.27]
18 July 2024 · P/E Ratio: 8.97 · 10Y Average: 11.03 · 1 Std Dev range: [9.56 , 12.50] · 2 Std Dev range: [8.10 , 13.97]
18 July 2024 · P/E Ratio: 8.97 · 20Y Average: 11.07 · 1 Std Dev range: [9.41 , 12.73] · 2 Std Dev range: [7.75 , 14.39]
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: 8.97 · 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
( 8.97 )
Deviation
vs μ
Valuation
Last 1Y 8.90 0.38 [8.14 · 8.52 , 9.27 · 9.65]
+0.20 σ
Fair
Last 2Y 9.19 0.59 [8.01 · 8.60 , 9.79 · 10.38]
-0.38 σ
Fair
Last 3Y 9.76 1.11 [7.53 · 8.65 , 10.88 · 11.99]
-0.71 σ
Fair
Last 4Y 11.06 2.21 [6.63 · 8.84 , 13.27 · 15.48]
-0.94 σ
Fair
Last 5Y 11.27 2.00 [7.27 · 9.27 , 13.27 · 15.27]
-1.15 σ
Undervalued
Last 6Y 11.08 1.71 [7.67 · 9.38 , 12.79 · 14.50]
-1.24 σ
Undervalued
Last 7Y 11.40 1.67 [8.07 · 9.73 , 13.07 · 14.74]
-1.46 σ
Undervalued
Last 8Y 11.42 1.46 [8.49 · 9.96 , 12.89 · 14.35]
-1.67 σ
Undervalued
Last 9Y 11.17 1.45 [8.27 · 9.72 , 12.62 · 14.08]
-1.52 σ
Undervalued
Last 10Y 11.03 1.47 [8.10 · 9.56 , 12.50 · 13.97]
-1.40 σ
Undervalued
Last 11Y 10.72 1.49 [7.74 · 9.23 , 12.21 · 13.70]
-1.17 σ
Undervalued
Last 12Y 10.54 1.48 [7.59 · 9.07 , 12.02 · 13.49]
-1.06 σ
Undervalued
Last 13Y 10.34 1.45 [7.45 · 8.89 , 11.79 · 13.23]
-0.95 σ
Fair
Last 14Y 10.44 1.42 [7.61 · 9.02 , 11.85 · 13.27]
-1.04 σ
Undervalued
Last 15Y 10.70 1.57 [7.57 · 9.13 , 12.27 · 13.83]
-1.10 σ
Undervalued
Last 16Y 10.67 1.55 [7.57 · 9.12 , 12.22 · 13.78]
-1.10 σ
Undervalued
Last 17Y 10.91 1.71 [7.49 · 9.20 , 12.62 · 14.33]
-1.13 σ
Undervalued
Last 18Y 11.07 1.78 [7.50 · 9.29 , 12.86 · 14.64]
-1.18 σ
Undervalued
Last 19Y 11.07 1.72 [7.63 · 9.35 , 12.79 · 14.51]
-1.22 σ
Undervalued
Last 20Y 11.07 1.66 [7.75 · 9.41 , 12.73 · 14.39]
-1.26 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 8.97
+0.20 σ -1.15 σ -1.40 σ -1.26 σ
All World 20.63
+2.80 σ +2.32 σ +3.65 σ +4.33 σ
Emerging Markets 14.17
+2.35 σ +0.51 σ +1.15 σ +1.38 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 +3.99% 18 Jul
Short Term Price vs SMA50 -3.73% 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.