Europe Stocks: current P/E Ratio

16.31
Last update: 17 January 2025

The estimated P/E Ratio for Europe Stocks is 16.31, calculated on 17 January 2025.

Considering the last 5 years, an average P/E interval is [12.11 , 15.29]. For this reason, the current P/E can be considered Overvalued

P/E Ratio is calculated on the VGK Etf, whose benchmark is the Europe Stocks.

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 Europe Stocks 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: 16.31
17 January 2025 · P/E Ratio: 16.31 · 1Y Average: 15.21 · 1 Std Dev range: [14.41 , 16.01] · 2 Std Dev range: [13.60 , 16.82]
17 January 2025 · P/E Ratio: 16.31 · 5Y Average: 13.70 · 1 Std Dev range: [12.11 , 15.29] · 2 Std Dev range: [10.53 , 16.87]
17 January 2025 · P/E Ratio: 16.31 · 10Y Average: 13.66 · 1 Std Dev range: [12.64 , 14.68] · 2 Std Dev range: [11.62 , 15.69]
17 January 2025 · P/E Ratio: 16.31 · 20Y Average: 12.44 · 1 Std Dev range: [11.06 , 13.81] · 2 Std Dev range: [9.69 , 15.18]
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: 16.31 · Last Periods metrics
Show all periods
Swipe left to see all data
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
( 16.31 )		 Deviation
vs μ		 Valuation
Last 1Y 15.21 0.80 [13.60 · 14.41 , 16.01 · 16.82]
+1.37 σ
Overvalued
Last 2Y 13.98 1.22 [11.54 · 12.76 , 15.20 · 16.42]
+1.91 σ
Overvalued
Last 3Y 12.71 1.65 [9.41 · 11.06 , 14.36 · 16.01]
+2.18 σ
Expensive
Last 4Y 13.23 1.57 [10.08 · 11.66 , 14.80 · 16.38]
+1.96 σ
Overvalued
Last 5Y 13.70 1.59 [10.53 · 12.11 , 15.29 · 16.87]
+1.65 σ
Overvalued
Last 6Y 13.44 1.41 [10.61 · 12.02 , 14.85 · 16.27]
+2.03 σ
Expensive
Last 7Y 13.32 1.29 [10.74 · 12.03 , 14.62 · 15.91]
+2.31 σ
Expensive
Last 8Y 13.43 1.15 [11.12 · 12.27 , 14.58 · 15.74]
+2.50 σ
Expensive
Last 9Y 13.48 1.04 [11.39 · 12.43 , 14.52 · 15.56]
+2.72 σ
Expensive
Last 10Y 13.66 1.02 [11.62 · 12.64 , 14.68 · 15.69]
+2.61 σ
Expensive
Last 11Y 13.59 0.93 [11.74 · 12.66 , 14.51 · 15.44]
+2.94 σ
Expensive
Last 12Y 13.39 1.03 [11.33 · 12.36 , 14.43 · 15.46]
+2.82 σ
Expensive
Last 13Y 13.12 1.23 [10.67 · 11.89 , 14.35 · 15.57]
+2.60 σ
Expensive
Last 14Y 12.86 1.43 [10.00 · 11.43 , 14.28 · 15.71]
+2.42 σ
Expensive
Last 15Y 12.69 1.51 [9.66 · 11.18 , 14.20 · 15.72]
+2.39 σ
Expensive
Last 16Y 12.56 1.50 [9.57 · 11.06 , 14.05 · 15.55]
+2.51 σ
Expensive
Last 17Y 12.38 1.56 [9.27 · 10.83 , 13.94 · 15.49]
+2.53 σ
Expensive
Last 18Y 12.37 1.47 [9.43 · 10.90 , 13.85 · 15.32]
+2.67 σ
Expensive
Last 19Y 12.37 1.41 [9.55 · 10.96 , 13.78 · 15.20]
+2.79 σ
Expensive
Last 20Y 12.44 1.37 [9.69 · 11.06 , 13.81 · 15.18]
+2.82 σ
Expensive

Europe Stocks Trend

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

Swipe left to see all data
Trend Indicator Valuation Margin
Long Term Price vs SMA200 -3.67% 17 Jan
Short Term Price vs SMA50 -0.04% 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.