Europe Stocks: current P/E Ratio

16.79
Last update: 21 February 2025

The estimated P/E Ratio for Europe Stocks is 16.79, calculated on 21 February 2025.

Considering the last 5 years, an average P/E interval is [12.13 , 15.37]. 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.

21 February 2025 · P/E Ratio: 16.79
21 February 2025 · P/E Ratio: 16.79 · 1Y Average: 15.51 · 1 Std Dev range: [15.02 , 15.99] · 2 Std Dev range: [14.53 , 16.48]
21 February 2025 · P/E Ratio: 16.79 · 5Y Average: 13.75 · 1 Std Dev range: [12.13 , 15.37] · 2 Std Dev range: [10.51 , 16.98]
21 February 2025 · P/E Ratio: 16.79 · 10Y Average: 13.68 · 1 Std Dev range: [12.64 , 14.72] · 2 Std Dev range: [11.60 , 15.76]
21 February 2025 · P/E Ratio: 16.79 · 20Y Average: 12.44 · 1 Std Dev range: [11.06 , 13.81] · 2 Std Dev range: [9.69 , 15.19]
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".
21 February 2025 · P/E Ratio: 16.79 · 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
( 16.79 )		 Deviation
vs μ		 Valuation
Last 1Y 15.51 0.49 [14.53 · 15.02 , 15.99 · 16.48]
+2.63 σ
Expensive
Last 2Y 14.19 1.21 [11.78 · 12.98 , 15.40 · 16.60]
+2.16 σ
Expensive
Last 3Y 12.81 1.75 [9.30 · 11.05 , 14.56 · 16.31]
+2.27 σ
Expensive
Last 4Y 13.23 1.57 [10.08 · 11.66 , 14.80 · 16.38]
+2.26 σ
Expensive
Last 5Y 13.75 1.62 [10.51 · 12.13 , 15.37 · 16.98]
+1.88 σ
Overvalued
Last 6Y 13.51 1.43 [10.65 · 12.08 , 14.94 · 16.37]
+2.29 σ
Expensive
Last 7Y 13.36 1.33 [10.70 · 12.03 , 14.68 · 16.01]
+2.59 σ
Expensive
Last 8Y 13.45 1.18 [11.09 · 12.27 , 14.63 · 15.81]
+2.83 σ
Expensive
Last 9Y 13.50 1.07 [11.37 · 12.43 , 14.57 · 15.64]
+3.08 σ
Expensive
Last 10Y 13.68 1.04 [11.60 · 12.64 , 14.72 · 15.76]
+3.00 σ
Expensive
Last 11Y 13.61 0.94 [11.72 · 12.67 , 14.56 · 15.50]
+3.37 σ
Expensive
Last 12Y 13.43 1.03 [11.37 · 12.40 , 14.46 · 15.49]
+3.26 σ
Expensive
Last 13Y 13.16 1.22 [10.73 · 11.94 , 14.38 · 15.60]
+2.98 σ
Expensive
Last 14Y 12.89 1.42 [10.05 · 11.47 , 14.32 · 15.74]
+2.74 σ
Expensive
Last 15Y 12.71 1.53 [9.66 · 11.18 , 14.24 · 15.77]
+2.67 σ
Expensive
Last 16Y 12.59 1.50 [9.60 · 11.10 , 14.09 · 15.59]
+2.81 σ
Expensive
Last 17Y 12.40 1.57 [9.26 · 10.83 , 13.98 · 15.55]
+2.79 σ
Expensive
Last 18Y 12.39 1.49 [9.41 · 10.90 , 13.88 · 15.36]
+2.96 σ
Expensive
Last 19Y 12.39 1.42 [9.54 · 10.96 , 13.81 · 15.24]
+3.09 σ
Expensive
Last 20Y 12.44 1.38 [9.69 · 11.06 , 13.81 · 15.19]
+3.16 σ
Expensive

Europe Stocks Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +3.11% 21 Feb
Short Term Price vs SMA50 +5.55% 21 Feb
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.