United States Stock Market: current P/E Ratio

25.14
Last update: 18 July 2024

The estimated P/E Ratio for United States Stock Market is 25.14, calculated on 18 July 2024.

Considering the last 5 years, an average P/E interval is [18.60 , 22.34]. 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.

18 July 2024 · P/E Ratio: 25.14
18 July 2024 · P/E Ratio: 25.14 · 1Y Average: 22.18 · 1 Std Dev range: [20.98 , 23.39] · 2 Std Dev range: [19.78 , 24.59]
18 July 2024 · P/E Ratio: 25.14 · 5Y Average: 20.47 · 1 Std Dev range: [18.60 , 22.34] · 2 Std Dev range: [16.73 , 24.21]
18 July 2024 · P/E Ratio: 25.14 · 10Y Average: 18.40 · 1 Std Dev range: [16.43 , 20.37] · 2 Std Dev range: [14.46 , 22.34]
18 July 2024 · P/E Ratio: 25.14 · 20Y Average: 16.00 · 1 Std Dev range: [13.90 , 18.10] · 2 Std Dev range: [11.80 , 20.20]
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".
18 July 2024 · P/E Ratio: 25.14 · 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
( 25.14 )
Deviation
vs μ
Valuation
Last 1Y 22.18 1.20 [19.78 · 20.98 , 23.39 · 24.59]
+2.46 σ
Expensive
Last 2Y 20.08 2.00 [16.09 · 18.09 , 22.08 · 24.07]
+2.54 σ
Expensive
Last 3Y 20.25 1.68 [16.89 · 18.57 , 21.93 · 23.60]
+2.92 σ
Expensive
Last 4Y 20.93 1.63 [17.67 · 19.30 , 22.56 · 24.19]
+2.59 σ
Expensive
Last 5Y 20.47 1.87 [16.73 · 18.60 , 22.34 · 24.21]
+2.50 σ
Expensive
Last 6Y 19.65 2.19 [15.27 · 17.46 , 21.84 · 24.03]
+2.51 σ
Expensive
Last 7Y 19.28 2.12 [15.04 · 17.16 , 21.40 · 23.52]
+2.77 σ
Expensive
Last 8Y 18.92 2.00 [14.91 · 16.92 , 20.92 · 22.93]
+3.10 σ
Expensive
Last 9Y 18.60 1.98 [14.64 · 16.62 , 20.58 · 22.55]
+3.31 σ
Expensive
Last 10Y 18.40 1.97 [14.46 · 16.43 , 20.37 · 22.34]
+3.42 σ
Expensive
Last 11Y 18.04 1.97 [14.10 · 16.07 , 20.01 · 21.98]
+3.60 σ
Expensive
Last 12Y 17.71 2.04 [13.63 · 15.67 , 19.76 · 21.80]
+3.63 σ
Expensive
Last 13Y 17.27 2.22 [12.83 · 15.05 , 19.50 · 21.72]
+3.54 σ
Expensive
Last 14Y 16.87 2.43 [12.01 · 14.44 , 19.30 · 21.73]
+3.40 σ
Expensive
Last 15Y 16.68 2.44 [11.79 · 14.24 , 19.12 · 21.57]
+3.46 σ
Expensive
Last 16Y 16.33 2.50 [11.32 · 13.83 , 18.83 · 21.33]
+3.52 σ
Expensive
Last 17Y 16.17 2.43 [11.31 · 13.74 , 18.60 · 21.03]
+3.69 σ
Expensive
Last 18Y 16.04 2.29 [11.46 · 13.75 , 18.33 · 20.63]
+3.97 σ
Expensive
Last 19Y 15.97 2.19 [11.59 · 13.78 , 18.15 · 20.34]
+4.20 σ
Expensive
Last 20Y 16.00 2.10 [11.80 · 13.90 , 18.10 · 20.20]
+4.36 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 25.14
+2.46 σ +2.50 σ +3.42 σ +4.36 σ
All World 20.63
+2.80 σ +2.32 σ +3.65 σ +4.33 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 +11.61% 18 Jul
Short Term Price vs SMA50 +2.59% 18 Jul
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.