United Kingdom Stock Market: current P/E Ratio

17.38
Last update: 21 February 2025

The estimated P/E Ratio for United Kingdom Stock Market is 17.38, calculated on 21 February 2025.

Considering the last 5 years, an average P/E interval is [10.52 , 14.04]. For this reason, the current P/E can be considered Expensive

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.

21 February 2025 · P/E Ratio: 17.38
21 February 2025 · P/E Ratio: 17.38 · 1Y Average: 15.05 · 1 Std Dev range: [13.57 , 16.53] · 2 Std Dev range: [12.10 , 18.00]
21 February 2025 · P/E Ratio: 17.38 · 5Y Average: 12.28 · 1 Std Dev range: [10.52 , 14.04] · 2 Std Dev range: [8.76 , 15.80]
21 February 2025 · P/E Ratio: 17.38 · 10Y Average: 13.18 · 1 Std Dev range: [11.71 , 14.65] · 2 Std Dev range: [10.24 , 16.11]
21 February 2025 · P/E Ratio: 17.38 · 20Y Average: 12.15 · 1 Std Dev range: [10.71 , 13.59] · 2 Std Dev range: [9.27 , 15.03]
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: 17.38 · 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
( 17.38 )
Deviation
vs μ
Valuation
Last 1Y 15.05 1.48 [12.10 · 13.57 , 16.53 · 18.00]
+1.58 σ
Overvalued
Last 2Y 12.51 2.23 [8.05 · 10.28 , 14.74 · 16.97]
+2.18 σ
Expensive
Last 3Y 11.33 1.75 [7.83 · 9.58 , 13.08 · 14.82]
+3.46 σ
Expensive
Last 4Y 11.63 1.48 [8.67 · 10.15 , 13.11 · 14.59]
+3.89 σ
Expensive
Last 5Y 12.28 1.76 [8.76 · 10.52 , 14.04 · 15.80]
+2.90 σ
Expensive
Last 6Y 12.22 1.45 [9.32 · 10.77 , 13.66 · 15.11]
+3.57 σ
Expensive
Last 7Y 12.28 1.29 [9.70 · 10.99 , 13.57 · 14.86]
+3.95 σ
Expensive
Last 8Y 12.56 1.34 [9.89 · 11.23 , 13.90 · 15.23]
+3.61 σ
Expensive
Last 9Y 12.87 1.43 [10.01 · 11.44 , 14.30 · 15.73]
+3.16 σ
Expensive
Last 10Y 13.18 1.47 [10.24 · 11.71 , 14.65 · 16.11]
+2.87 σ
Expensive
Last 11Y 13.18 1.34 [10.49 · 11.83 , 14.52 · 15.87]
+3.13 σ
Expensive
Last 12Y 13.05 1.32 [10.41 · 11.73 , 14.36 · 15.68]
+3.30 σ
Expensive
Last 13Y 12.77 1.43 [9.91 · 11.34 , 14.21 · 15.64]
+3.22 σ
Expensive
Last 14Y 12.52 1.56 [9.39 · 10.96 , 14.08 · 15.65]
+3.11 σ
Expensive
Last 15Y 12.35 1.64 [9.08 · 10.71 , 13.99 · 15.62]
+3.08 σ
Expensive
Last 16Y 12.26 1.58 [9.10 · 10.68 , 13.83 · 15.41]
+3.25 σ
Expensive
Last 17Y 12.08 1.62 [8.83 · 10.46 , 13.71 · 15.33]
+3.26 σ
Expensive
Last 18Y 12.07 1.54 [8.98 · 10.53 , 13.61 · 15.15]
+3.45 σ
Expensive
Last 19Y 12.08 1.48 [9.12 · 10.60 , 13.56 · 15.04]
+3.58 σ
Expensive
Last 20Y 12.15 1.44 [9.27 · 10.71 , 13.59 · 15.03]
+3.64 σ
Expensive

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 17.38
+1.58 σ +2.90 σ +2.87 σ +3.64 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

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 +1.55% 21 Feb
Short Term Price vs SMA50 +3.76% 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.