Japan Stock Market: current P/E Ratio

16.83
Last update: 18 July 2024

The estimated P/E Ratio for Japan Stock Market is 16.83, calculated on 18 July 2024.

Considering the last 5 years, an average P/E interval is [12.98 , 16.03]. For this reason, the current P/E can be considered Overvalued

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.

18 July 2024 · P/E Ratio: 16.83
18 July 2024 · P/E Ratio: 16.83 · 1Y Average: 15.11 · 1 Std Dev range: [14.43 , 15.78] · 2 Std Dev range: [13.76 , 16.46]
18 July 2024 · P/E Ratio: 16.83 · 5Y Average: 14.51 · 1 Std Dev range: [12.98 , 16.03] · 2 Std Dev range: [11.45 , 17.56]
18 July 2024 · P/E Ratio: 16.83 · 10Y Average: 13.93 · 1 Std Dev range: [12.83 , 15.04] · 2 Std Dev range: [11.72 , 16.15]
18 July 2024 · P/E Ratio: 16.83 · 20Y Average: 14.48 · 1 Std Dev range: [12.90 , 16.06] · 2 Std Dev range: [11.32 , 17.64]
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".
18 July 2024 · P/E Ratio: 16.83 · 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
( 16.83 )
Deviation
vs μ
Valuation
Last 1Y 15.11 0.68 [13.76 · 14.43 , 15.78 · 16.46]
+2.54 σ
Expensive
Last 2Y 13.76 1.20 [11.37 · 12.57 , 14.96 · 16.16]
+2.56 σ
Expensive
Last 3Y 13.81 1.16 [11.48 · 12.64 , 14.97 · 16.14]
+2.59 σ
Expensive
Last 4Y 14.65 1.58 [11.49 · 13.07 , 16.23 · 17.81]
+1.38 σ
Overvalued
Last 5Y 14.51 1.53 [11.45 · 12.98 , 16.03 · 17.56]
+1.52 σ
Overvalued
Last 6Y 14.02 1.51 [11.01 · 12.51 , 15.53 · 17.04]
+1.86 σ
Overvalued
Last 7Y 14.00 1.35 [11.30 · 12.65 , 15.35 · 16.71]
+2.09 σ
Expensive
Last 8Y 13.95 1.19 [11.57 · 12.76 , 15.14 · 16.33]
+2.42 σ
Expensive
Last 9Y 13.86 1.15 [11.57 · 12.71 , 15.01 · 16.15]
+2.59 σ
Expensive
Last 10Y 13.93 1.11 [11.72 · 12.83 , 15.04 · 16.15]
+2.61 σ
Expensive
Last 11Y 13.89 1.02 [11.86 · 12.88 , 14.91 · 15.92]
+2.89 σ
Expensive
Last 12Y 13.83 1.05 [11.72 · 12.77 , 14.88 · 15.94]
+2.84 σ
Expensive
Last 13Y 13.65 1.06 [11.53 · 12.59 , 14.71 · 15.77]
+2.99 σ
Expensive
Last 14Y 13.60 1.02 [11.57 · 12.59 , 14.62 · 15.63]
+3.17 σ
Expensive
Last 15Y 13.85 1.22 [11.41 · 12.63 , 15.07 · 16.29]
+2.44 σ
Expensive
Last 16Y 13.92 1.29 [11.34 · 12.63 , 15.20 · 16.49]
+2.26 σ
Expensive
Last 17Y 13.97 1.30 [11.37 · 12.67 , 15.26 · 16.56]
+2.20 σ
Expensive
Last 18Y 14.16 1.45 [11.25 · 12.71 , 15.61 · 17.07]
+1.83 σ
Overvalued
Last 19Y 14.34 1.57 [11.21 · 12.77 , 15.90 · 17.47]
+1.59 σ
Overvalued
Last 20Y 14.48 1.58 [11.32 · 12.90 , 16.06 · 17.64]
+1.49 σ
Overvalued

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 16.83
+2.54 σ +1.52 σ +2.61 σ +1.49 σ
All World 20.63
+2.80 σ +2.32 σ +3.65 σ +4.33 σ
Developed ex-US 16.62
+4.06 σ +1.63 σ +2.76 σ +2.79 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 +6.64% 18 Jul
Short Term Price vs SMA50 +2.50% 18 Jul
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.