United States Stock Market: current P/E Ratio

27.61
Last update: 21 January 2025

The estimated P/E Ratio for United States Stock Market is 27.61, calculated on 21 January 2025.

Considering the last 5 years, an average P/E interval is [19.50 , 23.06]. For this reason, the current P/E can be considered Expensive

P/E Ratio is calculated on the VTI Etf, whose benchmark is the United States 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 States 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 January 2025 · P/E Ratio: 27.61
21 January 2025 · P/E Ratio: 27.61 · 1Y Average: 24.75 · 1 Std Dev range: [23.67 , 25.82] · 2 Std Dev range: [22.60 , 26.90]
21 January 2025 · P/E Ratio: 27.61 · 5Y Average: 21.28 · 1 Std Dev range: [19.50 , 23.06] · 2 Std Dev range: [17.72 , 24.84]
21 January 2025 · P/E Ratio: 27.61 · 10Y Average: 18.82 · 1 Std Dev range: [16.67 , 20.97] · 2 Std Dev range: [14.52 , 23.12]
21 January 2025 · P/E Ratio: 27.61 · 20Y Average: 16.18 · 1 Std Dev range: [13.85 , 18.51] · 2 Std Dev range: [11.52 , 20.84]
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 January 2025 · P/E Ratio: 27.61 · 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
( 27.61 )		 Deviation
vs μ		 Valuation
Last 1Y 24.75 1.07 [22.60 · 23.67 , 25.82 · 26.90]
+2.67 σ
Expensive
Last 2Y 22.38 2.16 [18.05 · 20.22 , 24.54 · 26.71]
+2.42 σ
Expensive
Last 3Y 20.77 2.33 [16.11 · 18.44 , 23.09 · 25.42]
+2.94 σ
Expensive
Last 4Y 21.14 1.88 [17.38 · 19.26 , 23.03 · 24.91]
+3.43 σ
Expensive
Last 5Y 21.28 1.78 [17.72 · 19.50 , 23.06 · 24.84]
+3.55 σ
Expensive
Last 6Y 20.37 2.18 [16.01 · 18.19 , 22.55 · 24.73]
+3.32 σ
Expensive
Last 7Y 19.74 2.35 [15.04 · 17.39 , 22.10 · 24.45]
+3.34 σ
Expensive
Last 8Y 19.39 2.19 [15.01 · 17.20 , 21.58 · 23.77]
+3.75 σ
Expensive
Last 9Y 19.03 2.17 [14.69 · 16.86 , 21.20 · 23.38]
+3.95 σ
Expensive
Last 10Y 18.82 2.15 [14.52 · 16.67 , 20.97 · 23.12]
+4.09 σ
Expensive
Last 11Y 18.44 2.14 [14.16 · 16.30 , 20.58 · 22.72]
+4.28 σ
Expensive
Last 12Y 18.12 2.18 [13.76 · 15.94 , 20.30 · 22.48]
+4.35 σ
Expensive
Last 13Y 17.72 2.27 [13.19 · 15.45 , 19.98 · 22.25]
+4.37 σ
Expensive
Last 14Y 17.30 2.49 [12.33 · 14.81 , 19.79 · 22.27]
+4.15 σ
Expensive
Last 15Y 17.01 2.63 [11.76 · 14.38 , 19.64 · 22.27]
+4.03 σ
Expensive
Last 16Y 16.71 2.61 [11.50 · 14.10 , 19.32 · 21.93]
+4.18 σ
Expensive
Last 17Y 16.44 2.65 [11.14 · 13.79 , 19.09 · 21.74]
+4.22 σ
Expensive
Last 18Y 16.30 2.51 [11.27 · 13.78 , 18.81 · 21.32]
+4.50 σ
Expensive
Last 19Y 16.19 2.42 [11.36 · 13.77 , 18.60 · 21.02]
+4.73 σ
Expensive
Last 20Y 16.18 2.33 [11.52 · 13.85 , 18.51 · 20.84]
+4.90 σ
Expensive

P/E Comparison

How is the United States 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 States 27.61
+2.67 σ +3.55 σ +4.09 σ +4.90 σ
All World 21.86
+1.93 σ +2.75 σ +3.82 σ +4.64 σ

United States Stock Market Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +8.45% 21 Jan
Short Term Price vs SMA50 +1.22% 21 Jan
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.