United Kingdom Stock Market: current P/E Ratio

13.23
Last update: 03 May 2024

The estimated P/E Ratio for United Kingdom Stock Market is 13.23, calculated on 03 May 2024.

Considering the last 5 years, an average P/E interval is [10.55 , 13.06]. For this reason, the current P/E can be considered Overvalued

P/E Ratio is calculated on the EWU Etf, whose benchmark is the United Kingdom 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 United Kingdom Stock Market P/E Ratio has changed over time. Furthermore, for some trailing timeframes, you can view the average P/E and standard deviation.

03 May 2024 · P/E Ratio: 13.23
03 May 2024 · P/E Ratio: 13.23 · 1Y Average: 10.52 · 1 Std Dev range: [10.14 , 10.90] · 2 Std Dev range: [9.76 , 11.27]
03 May 2024 · P/E Ratio: 13.23 · 5Y Average: 11.80 · 1 Std Dev range: [10.55 , 13.06] · 2 Std Dev range: [9.29 , 14.31]
03 May 2024 · P/E Ratio: 13.23 · 10Y Average: 13.02 · 1 Std Dev range: [11.70 , 14.34] · 2 Std Dev range: [10.37 , 15.67]
03 May 2024 · P/E Ratio: 13.23 · 20Y Average: 12.16 · 1 Std Dev range: [10.70 , 13.62] · 2 Std Dev range: [9.25 , 15.07]
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".
03 May 2024 · P/E Ratio: 13.23 · Last Periods metrics
Show all periods
Swipe left to see all data
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
( 13.23 )
Deviation
vs μ
Valuation
Last 1Y 10.52 0.38 [9.76 · 10.14 , 10.90 · 11.28]
+7.16 σ
Expensive
Last 2Y 10.29 0.62 [9.05 · 9.67 , 10.90 · 11.52]
+4.77 σ
Expensive
Last 3Y 10.80 0.83 [9.14 · 9.97 , 11.62 · 12.45]
+2.94 σ
Expensive
Last 4Y 11.56 1.35 [8.87 · 10.22 , 12.91 · 14.26]
+1.23 σ
Overvalued
Last 5Y 11.80 1.26 [9.29 · 10.55 , 13.06 · 14.31]
+1.13 σ
Overvalued
Last 6Y 11.88 1.10 [9.69 · 10.79 , 12.98 · 14.08]
+1.22 σ
Overvalued
Last 7Y 12.26 1.26 [9.75 · 11.00 , 13.52 · 14.78]
+0.77 σ
Fair
Last 8Y 12.57 1.34 [9.89 · 11.23 , 13.90 · 15.24]
+0.49 σ
Fair
Last 9Y 12.84 1.38 [10.08 · 11.46 , 14.22 · 15.59]
+0.28 σ
Fair
Last 10Y 13.02 1.32 [10.37 · 11.70 , 14.34 · 15.67]
+0.16 σ
Fair
Last 11Y 12.92 1.24 [10.44 · 11.68 , 14.16 · 15.40]
+0.25 σ
Fair
Last 12Y 12.69 1.34 [10.02 · 11.35 , 14.03 · 15.37]
+0.40 σ
Fair
Last 13Y 12.41 1.48 [9.44 · 10.93 , 13.90 · 15.38]
+0.55 σ
Fair
Last 14Y 12.18 1.58 [9.02 · 10.60 , 13.76 · 15.35]
+0.66 σ
Fair
Last 15Y 12.17 1.51 [9.14 · 10.66 , 13.68 · 15.20]
+0.70 σ
Fair
Last 16Y 11.96 1.58 [8.81 · 10.39 , 13.54 · 15.11]
+0.80 σ
Fair
Last 17Y 11.94 1.51 [8.92 · 10.43 , 13.46 · 14.97]
+0.85 σ
Fair
Last 18Y 11.94 1.44 [9.07 · 10.51 , 13.38 · 14.82]
+0.89 σ
Fair
Last 19Y 11.98 1.38 [9.21 · 10.60 , 13.36 · 14.74]
+0.90 σ
Fair
Last 20Y 12.16 1.46 [9.25 · 10.70 , 13.62 · 15.07]
+0.73 σ
Fair

P/E Comparison

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

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
United Kingdom 13.23
+7.16 σ +1.13 σ +0.16 σ +0.73 σ
All World 20.50
+4.16 σ +2.37 σ +3.77 σ +4.38 σ
Developed ex-US 15.71
+4.09 σ +0.98 σ +1.77 σ +1.97 σ

United Kingdom Stock Market Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +8.57% 03 May
Short Term Price vs SMA50 +4.61% 03 May
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.