Japan Stock Market: current P/E Ratio

15.34
Last update: 17 January 2025

The estimated P/E Ratio for Japan Stock Market is 15.34, calculated on 17 January 2025.

Considering the last 5 years, an average P/E interval is [13.18 , 16.43]. For this reason, the current P/E can be considered Fair

P/E Ratio is calculated on the EWJ Etf, whose benchmark is the Japan 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 Japan 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: 15.34
17 January 2025 · P/E Ratio: 15.34 · 1Y Average: 15.79 · 1 Std Dev range: [14.96 , 16.62] · 2 Std Dev range: [14.13 , 17.46]
17 January 2025 · P/E Ratio: 15.34 · 5Y Average: 14.81 · 1 Std Dev range: [13.18 , 16.43] · 2 Std Dev range: [11.55 , 18.06]
17 January 2025 · P/E Ratio: 15.34 · 10Y Average: 14.05 · 1 Std Dev range: [12.83 , 15.28] · 2 Std Dev range: [11.60 , 16.50]
17 January 2025 · P/E Ratio: 15.34 · 20Y Average: 14.45 · 1 Std Dev range: [12.86 , 16.04] · 2 Std Dev range: [11.27 , 17.63]
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: 15.34 · 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
( 15.34 )
Deviation
vs μ
Valuation
Last 1Y 15.79 0.83 [14.13 · 14.96 , 16.62 · 17.46]
-0.55 σ
Fair
Last 2Y 14.62 1.28 [12.06 · 13.34 , 15.90 · 17.18]
+0.56 σ
Fair
Last 3Y 13.76 1.27 [11.22 · 12.49 , 15.02 · 16.29]
+1.25 σ
Overvalued
Last 4Y 14.40 1.46 [11.48 · 12.94 , 15.86 · 17.32]
+0.64 σ
Fair
Last 5Y 14.81 1.63 [11.55 · 13.18 , 16.43 · 18.06]
+0.33 σ
Fair
Last 6Y 14.34 1.60 [11.15 · 12.75 , 15.94 · 17.54]
+0.62 σ
Fair
Last 7Y 14.10 1.52 [11.06 · 12.58 , 15.62 · 17.13]
+0.82 σ
Fair
Last 8Y 14.10 1.34 [11.42 · 12.76 , 15.43 · 16.77]
+0.93 σ
Fair
Last 9Y 13.95 1.28 [11.39 · 12.67 , 15.22 · 16.50]
+1.09 σ
Overvalued
Last 10Y 14.05 1.22 [11.60 · 12.83 , 15.28 · 16.50]
+1.05 σ
Overvalued
Last 11Y 13.94 1.12 [11.70 · 12.82 , 15.07 · 16.19]
+1.24 σ
Overvalued
Last 12Y 13.98 1.09 [11.81 · 12.90 , 15.07 · 16.16]
+1.24 σ
Overvalued
Last 13Y 13.80 1.10 [11.59 · 12.69 , 14.90 · 16.01]
+1.39 σ
Overvalued
Last 14Y 13.68 1.11 [11.47 · 12.57 , 14.79 · 15.90]
+1.50 σ
Overvalued
Last 15Y 13.79 1.16 [11.48 · 12.63 , 14.95 · 16.10]
+1.34 σ
Overvalued
Last 16Y 14.01 1.36 [11.28 · 12.64 , 15.37 · 16.74]
+0.97 σ
Fair
Last 17Y 13.96 1.33 [11.30 · 12.63 , 15.28 · 16.61]
+1.04 σ
Overvalued
Last 18Y 14.11 1.43 [11.25 · 12.68 , 15.54 · 16.97]
+0.86 σ
Fair
Last 19Y 14.31 1.57 [11.17 · 12.74 , 15.89 · 17.46]
+0.65 σ
Fair
Last 20Y 14.45 1.59 [11.27 · 12.86 , 16.04 · 17.63]
+0.56 σ
Fair

P/E Comparison

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

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
Japan 15.34
-0.55 σ +0.33 σ +1.05 σ +0.56 σ
All World 21.60
+1.63 σ +2.57 σ +3.64 σ +4.47 σ
Developed ex-US 16.40
+1.32 σ +1.13 σ +2.10 σ +2.54 σ

Japan Stock Market Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 -3.80% 17 Jan
Short Term Price vs SMA50 -2.87% 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.