United States Stock Market: current P/E Ratio

25.82
Last update: 21 February 2025

The estimated P/E Ratio for United States Stock Market is 25.82, calculated on 21 February 2025.

Considering the last 5 years, an average P/E interval is [19.59 , 23.25]. 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 February 2025 · P/E Ratio: 25.82
21 February 2025 · P/E Ratio: 25.82 · 1Y Average: 25.08 · 1 Std Dev range: [24.12 , 26.04] · 2 Std Dev range: [23.17 , 26.99]
21 February 2025 · P/E Ratio: 25.82 · 5Y Average: 21.42 · 1 Std Dev range: [19.59 , 23.25] · 2 Std Dev range: [17.77 , 25.07]
21 February 2025 · P/E Ratio: 25.82 · 10Y Average: 18.89 · 1 Std Dev range: [16.71 , 21.08] · 2 Std Dev range: [14.53 , 23.26]
21 February 2025 · P/E Ratio: 25.82 · 20Y Average: 16.21 · 1 Std Dev range: [13.84 , 18.58] · 2 Std Dev range: [11.48 , 20.95]
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: 25.82 · 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
( 25.82 )		 Deviation
vs μ		 Valuation
Last 1Y 25.08 0.96 [23.17 · 24.12 , 26.04 · 26.99]
+0.78 σ
Fair
Last 2Y 22.73 2.20 [18.33 · 20.53 , 24.92 · 27.12]
+1.41 σ
Overvalued
Last 3Y 20.90 2.50 [15.89 · 18.40 , 23.40 · 25.91]
+1.97 σ
Overvalued
Last 4Y 21.20 1.97 [17.25 · 19.23 , 23.18 · 25.15]
+2.34 σ
Expensive
Last 5Y 21.42 1.83 [17.77 · 19.59 , 23.25 · 25.07]
+2.41 σ
Expensive
Last 6Y 20.51 2.19 [16.14 · 18.32 , 22.70 · 24.89]
+2.43 σ
Expensive
Last 7Y 19.82 2.40 [15.02 · 17.42 , 22.23 · 24.63]
+2.50 σ
Expensive
Last 8Y 19.47 2.22 [15.02 · 17.25 , 21.69 · 23.92]
+2.86 σ
Expensive
Last 9Y 19.11 2.21 [14.70 · 16.90 , 21.31 · 23.52]
+3.04 σ
Expensive
Last 10Y 18.89 2.18 [14.53 · 16.71 , 21.08 · 23.26]
+3.17 σ
Expensive
Last 11Y 18.51 2.17 [14.17 · 16.34 , 20.68 · 22.85]
+3.37 σ
Expensive
Last 12Y 18.19 2.21 [13.77 · 15.98 , 20.40 · 22.60]
+3.46 σ
Expensive
Last 13Y 17.79 2.28 [13.23 · 15.51 , 20.07 · 22.35]
+3.52 σ
Expensive
Last 14Y 17.37 2.50 [12.36 · 14.87 , 19.87 · 22.38]
+3.38 σ
Expensive
Last 15Y 17.07 2.66 [11.75 · 14.41 , 19.73 · 22.39]
+3.29 σ
Expensive
Last 16Y 16.78 2.62 [11.53 · 14.15 , 19.40 · 22.02]
+3.45 σ
Expensive
Last 17Y 16.48 2.69 [11.11 · 13.80 , 19.17 · 21.85]
+3.48 σ
Expensive
Last 18Y 16.34 2.55 [11.24 · 13.79 , 18.89 · 21.44]
+3.72 σ
Expensive
Last 19Y 16.23 2.45 [11.32 · 13.77 , 18.68 · 21.13]
+3.91 σ
Expensive
Last 20Y 16.21 2.37 [11.48 · 13.84 , 18.58 · 20.95]
+4.06 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 25.82
+0.78 σ +2.41 σ +3.17 σ +4.06 σ
All World 21.12
+1.04 σ +2.13 σ +3.20 σ +4.10 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 +5.25% 21 Feb
Short Term Price vs SMA50 -0.31% 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.