Japan Stock Market: current P/E Ratio

15.11
Last update: 22 April 2024

The estimated P/E Ratio for Japan Stock Market is 15.11, calculated on 22 April 2024.

Considering the last 5 years, an average P/E interval is [12.74 , 15.84]. 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.

22 April 2024 · P/E Ratio: 15.11
22 April 2024 · P/E Ratio: 15.11 · 1Y Average: 14.32 · 1 Std Dev range: [13.36 , 15.29] · 2 Std Dev range: [12.40 , 16.25]
22 April 2024 · P/E Ratio: 15.11 · 5Y Average: 14.29 · 1 Std Dev range: [12.74 , 15.84] · 2 Std Dev range: [11.19 , 17.39]
22 April 2024 · P/E Ratio: 15.11 · 10Y Average: 13.84 · 1 Std Dev range: [12.79 , 14.90] · 2 Std Dev range: [11.73 , 15.95]
22 April 2024 · P/E Ratio: 15.11 · 20Y Average: 14.51 · 1 Std Dev range: [12.89 , 16.12] · 2 Std Dev range: [11.27 , 17.74]
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".
22 April 2024 · P/E Ratio: 15.11 · 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
( 15.11 )
Deviation
vs μ
Valuation
Last 1Y 14.32 0.96 [12.40 · 13.36 , 15.29 · 16.25]
+0.82 σ
Fair
Last 2Y 13.29 0.96 [11.36 · 12.33 , 14.25 · 15.21]
+1.89 σ
Overvalued
Last 3Y 13.83 1.20 [11.43 · 12.63 , 15.03 · 16.23]
+1.06 σ
Overvalued
Last 4Y 14.53 1.61 [11.32 · 12.93 , 16.14 · 17.75]
+0.36 σ
Fair
Last 5Y 14.29 1.55 [11.19 · 12.74 , 15.84 · 17.39]
+0.53 σ
Fair
Last 6Y 13.88 1.44 [10.99 · 12.44 , 15.32 · 16.76]
+0.85 σ
Fair
Last 7Y 13.92 1.28 [11.35 · 12.63 , 15.20 · 16.48]
+0.93 σ
Fair
Last 8Y 13.81 1.16 [11.49 · 12.65 , 14.96 · 16.12]
+1.13 σ
Overvalued
Last 9Y 13.84 1.11 [11.61 · 12.73 , 14.96 · 16.07]
+1.14 σ
Overvalued
Last 10Y 13.84 1.06 [11.73 · 12.79 , 14.90 · 15.95]
+1.20 σ
Overvalued
Last 11Y 13.88 1.01 [11.86 · 12.87 , 14.88 · 15.89]
+1.22 σ
Overvalued
Last 12Y 13.73 1.03 [11.68 · 12.70 , 14.76 · 15.79]
+1.34 σ
Overvalued
Last 13Y 13.58 1.02 [11.55 · 12.56 , 14.60 · 15.61]
+1.50 σ
Overvalued
Last 14Y 13.60 1.00 [11.59 · 12.59 , 14.60 · 15.60]
+1.51 σ
Overvalued
Last 15Y 13.88 1.27 [11.33 · 12.60 , 15.15 · 16.42]
+0.97 σ
Fair
Last 16Y 13.88 1.26 [11.36 · 12.62 , 15.15 · 16.41]
+0.97 σ
Fair
Last 17Y 13.99 1.35 [11.29 · 12.64 , 15.34 · 16.69]
+0.83 σ
Fair
Last 18Y 14.18 1.49 [11.20 · 12.69 , 15.67 · 17.16]
+0.62 σ
Fair
Last 19Y 14.33 1.56 [11.21 · 12.77 , 15.89 · 17.45]
+0.50 σ
Fair
Last 20Y 14.51 1.62 [11.27 · 12.89 , 16.12 · 17.74]
+0.37 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 15.11
+0.82 σ +0.53 σ +1.20 σ +0.37 σ
All World 19.96
+3.91 σ +2.09 σ +3.44 σ +4.04 σ
Developed ex-US 14.67
+2.53 σ +0.16 σ +0.51 σ +1.03 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 +5.00% 22 Apr
Short Term Price vs SMA50 -3.20% 22 Apr
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.