Japan Stock Market: current P/E Ratio

15.47
Last update: 21 February 2025

The estimated P/E Ratio for Japan Stock Market is 15.47, calculated on 21 February 2025.

Considering the last 5 years, an average P/E interval is [13.20 , 16.47]. 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.

21 February 2025 · P/E Ratio: 15.47
21 February 2025 · P/E Ratio: 15.47 · 1Y Average: 15.88 · 1 Std Dev range: [15.08 , 16.67] · 2 Std Dev range: [14.29 , 17.46]
21 February 2025 · P/E Ratio: 15.47 · 5Y Average: 14.83 · 1 Std Dev range: [13.20 , 16.47] · 2 Std Dev range: [11.57 , 18.10]
21 February 2025 · P/E Ratio: 15.47 · 10Y Average: 14.07 · 1 Std Dev range: [12.84 , 15.31] · 2 Std Dev range: [11.60 , 16.55]
21 February 2025 · P/E Ratio: 15.47 · 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".
21 February 2025 · P/E Ratio: 15.47 · 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
( 15.47 )
Deviation
vs μ
Valuation
Last 1Y 15.88 0.79 [14.29 · 15.08 , 16.67 · 17.46]
-0.52 σ
Fair
Last 2Y 14.80 1.19 [12.42 · 13.61 , 15.99 · 17.19]
+0.56 σ
Fair
Last 3Y 13.82 1.32 [11.17 · 12.49 , 15.14 · 16.47]
+1.25 σ
Overvalued
Last 4Y 14.37 1.42 [11.54 · 12.95 , 15.79 · 17.21]
+0.77 σ
Fair
Last 5Y 14.83 1.63 [11.57 · 13.20 , 16.47 · 18.10]
+0.39 σ
Fair
Last 6Y 14.41 1.58 [11.24 · 12.83 , 15.99 · 17.57]
+0.67 σ
Fair
Last 7Y 14.11 1.53 [11.05 · 12.58 , 15.64 · 17.17]
+0.89 σ
Fair
Last 8Y 14.11 1.35 [11.41 · 12.76 , 15.46 · 16.81]
+1.01 σ
Overvalued
Last 9Y 13.97 1.29 [11.39 · 12.68 , 15.26 · 16.55]
+1.16 σ
Overvalued
Last 10Y 14.07 1.24 [11.60 · 12.84 , 15.31 · 16.55]
+1.13 σ
Overvalued
Last 11Y 13.96 1.14 [11.68 · 12.82 , 15.09 · 16.23]
+1.33 σ
Overvalued
Last 12Y 14.01 1.10 [11.81 · 12.91 , 15.11 · 16.20]
+1.33 σ
Overvalued
Last 13Y 13.83 1.11 [11.61 · 12.72 , 14.94 · 16.05]
+1.48 σ
Overvalued
Last 14Y 13.70 1.12 [11.45 · 12.57 , 14.82 · 15.94]
+1.58 σ
Overvalued
Last 15Y 13.78 1.15 [11.49 · 12.64 , 14.93 · 16.08]
+1.47 σ
Overvalued
Last 16Y 14.01 1.37 [11.27 · 12.64 , 15.38 · 16.75]
+1.06 σ
Overvalued
Last 17Y 13.97 1.34 [11.30 · 12.63 , 15.30 · 16.64]
+1.12 σ
Overvalued
Last 18Y 14.11 1.42 [11.26 · 12.69 , 15.53 · 16.96]
+0.95 σ
Fair
Last 19Y 14.30 1.56 [11.19 · 12.75 , 15.86 · 17.42]
+0.75 σ
Fair
Last 20Y 14.45 1.59 [11.27 · 12.86 , 16.04 · 17.63]
+0.64 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 15.47
-0.52 σ +0.39 σ +1.13 σ +0.64 σ
All World 21.12
+1.04 σ +2.13 σ +3.20 σ +4.10 σ
Developed ex-US 17.36
+2.18 σ +1.78 σ +3.01 σ +3.38 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 +0.38% 21 Feb
Short Term Price vs SMA50 +1.67% 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.