United States Stock Market: current P/E Ratio

22.83
Last update: 22 April 2024

The estimated P/E Ratio for United States Stock Market is 22.83, calculated on 22 April 2024.

Considering the last 5 years, an average P/E interval is [18.17 , 22.02]. For this reason, the current P/E can be considered Overvalued

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.

22 April 2024 · P/E Ratio: 22.83
22 April 2024 · P/E Ratio: 22.83 · 1Y Average: 21.06 · 1 Std Dev range: [20.01 , 22.12] · 2 Std Dev range: [18.95 , 23.17]
22 April 2024 · P/E Ratio: 22.83 · 5Y Average: 20.09 · 1 Std Dev range: [18.17 , 22.02] · 2 Std Dev range: [16.24 , 23.94]
22 April 2024 · P/E Ratio: 22.83 · 10Y Average: 18.20 · 1 Std Dev range: [16.31 , 20.08] · 2 Std Dev range: [14.43 , 21.97]
22 April 2024 · P/E Ratio: 22.83 · 20Y Average: 15.93 · 1 Std Dev range: [13.94 , 17.91] · 2 Std Dev range: [11.96 , 19.90]
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".
22 April 2024 · P/E Ratio: 22.83 · 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
( 22.83 )
Deviation
vs μ
Valuation
Last 1Y 21.06 1.05 [18.95 · 20.01 , 22.12 · 23.17]
+1.68 σ
Overvalued
Last 2Y 19.38 1.64 [16.11 · 17.74 , 21.02 · 22.66]
+2.11 σ
Expensive
Last 3Y 20.17 1.60 [16.98 · 18.58 , 21.77 · 23.37]
+1.66 σ
Overvalued
Last 4Y 20.74 1.59 [17.55 · 19.14 , 22.33 · 23.92]
+1.32 σ
Overvalued
Last 5Y 20.09 1.92 [16.24 · 18.17 , 22.02 · 23.94]
+1.42 σ
Overvalued
Last 6Y 19.32 2.17 [14.98 · 17.15 , 21.48 · 23.65]
+1.62 σ
Overvalued
Last 7Y 19.05 2.01 [15.04 · 17.05 , 21.06 · 23.07]
+1.88 σ
Overvalued
Last 8Y 18.71 1.90 [14.91 · 16.81 , 20.61 · 22.51]
+2.17 σ
Expensive
Last 9Y 18.42 1.86 [14.71 · 16.56 , 20.28 · 22.14]
+2.37 σ
Expensive
Last 10Y 18.20 1.88 [14.43 · 16.31 , 20.08 · 21.97]
+2.46 σ
Expensive
Last 11Y 17.85 1.89 [14.07 · 15.96 , 19.73 · 21.62]
+2.64 σ
Expensive
Last 12Y 17.51 1.98 [13.54 · 15.53 , 19.49 · 21.48]
+2.68 σ
Expensive
Last 13Y 17.05 2.20 [12.65 · 14.85 , 19.25 · 21.44]
+2.63 σ
Expensive
Last 14Y 16.67 2.37 [11.94 · 14.30 , 19.04 · 21.40]
+2.60 σ
Expensive
Last 15Y 16.51 2.35 [11.81 · 14.16 , 18.86 · 21.21]
+2.69 σ
Expensive
Last 16Y 16.17 2.41 [11.36 · 13.77 , 18.58 · 20.98]
+2.77 σ
Expensive
Last 17Y 16.05 2.31 [11.43 · 13.74 , 18.36 · 20.68]
+2.93 σ
Expensive
Last 18Y 15.92 2.18 [11.57 · 13.75 , 18.10 · 20.28]
+3.17 σ
Expensive
Last 19Y 15.87 2.07 [11.74 · 13.80 , 17.94 · 20.00]
+3.37 σ
Expensive
Last 20Y 15.93 1.98 [11.96 · 13.94 , 17.91 · 19.90]
+3.48 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 22.83
+1.68 σ +1.42 σ +2.46 σ +3.48 σ
All World 19.96
+3.91 σ +2.09 σ +3.44 σ +4.04 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 +6.84% 22 Apr
Short Term Price vs SMA50 -2.29% 22 Apr
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.