Japan Stock Market PE Ratio

The Japan Stock Market currently trades at a current P/E ratio of 17.24 as of October 24, 2025.

Over the past five years, the median P/E has been 14.98, putting today's valuation in the 91.7th percentile of that range. Looking at the longer 10-year period, where the median sits at 14.03, the current reading ranks in the 94.2th percentile - a level historically associated with Expensive pricing. The 20-year median of 14.05 provides additional context, with the current ratio in the 85.4th percentile of that extended timeframe.

This analysis is based on the iShares MSCI Japan ETF (EWJ) which serves as the benchmark for the Japan market.

Since April 1996, the iShares MSCI Japan ETF has recorded a median P/E ratio of 15.7 over 30 years. Against this full historical backdrop, the current valuation sits in the 63.4th percentile of all recorded readings, indicating that the market is trading moderately above its long-term median.

Historical P/E Comparison

The table below compares the current P/E Ratio (17.24) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	15.52	100	Expensive
5 Year	14.98	91.7	Expensive
10 Year	14.03	94.2	Expensive
20 Year	14.05	85.4	Expensive
Since Apr 1996	15.7	63.4	Overvalued

Returns vs P/E Ratio

Over the past decade, the PE rose from 13.3 (17.4th percentile) to 17.24 (94.2th percentile). Annualized total return over this period was 5.2%. Percentile rank indicates position within the historical distribution. Elevated valuations do not necessarily imply immediate low returns; markets can remain richly valued for extended periods, but this warrants caution for longer-horizon return assumptions.

Time Period	Starting PE Ratio	Starting Percentile	Total Return	Annualized Return
1 Year	11.98	7.3	+23%	+23%
3 Year	12.13	9.7	+66.6%	+18.5%
5 Year	17.71	60.3	+39%	+6.8%
10 Year	13.26	17.4	+66.5%	+5.2%

Historical Data (1996-2025)

Date	Current PE Ratio
Oct 2025	17.24
Sep 2025	16.52
Aug 2025	15.90
Jul 2025	15.08
Jun 2025	15.35
May 2025	14.25
Apr 2025	15.94
Mar 2025	13.57
Feb 2025	15.21
Jan 2025	15.70
Dec 2024	14
Nov 2024	15.76
Oct 2024	11.98
Sep 2024	17.56
Aug 2024	18.15
Jul 2024	16.83
Jun 2024	16.31
May 2024	16.06
Apr 2024	15.01
Mar 2024	15.71
Feb 2024	16.36
Jan 2024	14.96
Dec 2023	14.79
Nov 2023	13.95
Oct 2023	14.06
Sep 2023	13.95
Aug 2023	14.78
Jul 2023	15.58
Jun 2023	13.80
May 2023	12.03
Apr 2023	12
Mar 2023	13.34
Feb 2023	12.85
Jan 2023	12.28
Dec 2022	12.44
Nov 2022	12.13
Oct 2022	12.13
Sep 2022	12.50
Aug 2022	12.56
Jul 2022	12.56
Jun 2022	12.65
May 2022	12.65
Apr 2022	12.08
Mar 2022	12.08
Feb 2022	13.38
Jan 2022	14.02
Dec 2021	14.44
Nov 2021	14.62
Oct 2021	15.01
Sep 2021	15.68
Aug 2021	15.27
Jul 2021	15.90
Jun 2021	16.26
May 2021	16.26
Apr 2021	16.97
Mar 2021	17.53
Feb 2021	18.34
Jan 2021	17.93
Dec 2020	16.92
Nov 2020	16.92
Oct 2020	17.71
Sep 2020	17.71
Aug 2020	17.16
Jul 2020	17.16
Jun 2020	16.46
May 2020	14.50
Apr 2020	11.06
Mar 2020	11.06
Feb 2020	14.04
Jan 2020	14.37
Dec 2019	14.37
Nov 2019	13.89
Oct 2019	13.22
Sep 2019	12.49
Aug 2019	12.58
Jul 2019	12.58
Jun 2019	12.26
May 2019	12.44
Apr 2019	12.44
Mar 2019	12.26
Feb 2019	12.26
Jan 2019	11.33
Dec 2018	10.60
Nov 2018	11.94
Oct 2018	12.68
Sep 2018	12.46
Aug 2018	12.46
Jul 2018	12.77
Jun 2018	13.19
May 2018	13.19
Apr 2018	12.94
Mar 2018	12.94
Feb 2018	13.57
Jan 2018	14.71
Dec 2017	14.73
Nov 2017	14.73
Oct 2017	14.48
Sep 2017	13.78
Aug 2017	14.26
Jul 2017	14.26
Jun 2017	14.26
May 2017	13.78
Apr 2017	13.78
Mar 2017	14.30
Feb 2017	14.73
Jan 2017	14.73
Dec 2016	14.06
Nov 2016	14.06
Oct 2016	13.65
Sep 2016	13.34
Aug 2016	13.34
Jul 2016	12.47
Jun 2016	12.48
May 2016	11.96
Apr 2016	11.96
Mar 2016	12.13
Feb 2016	12.69
Jan 2016	13.58
Dec 2015	14.32
Nov 2015	14.05
Oct 2015	13.26
Sep 2015	13.22
Aug 2015	13.97
Jul 2015	15.32
Jun 2015	15.43
May 2015	15.43
Apr 2015	15
Mar 2015	15
Feb 2015	13.99
Jan 2015	13.66
Dec 2014	13.66
Nov 2014	12.95
Oct 2014	12.95
Sep 2014	13.68
Aug 2014	13.68
Jul 2014	13.44
Jun 2014	13.44
May 2014	12.64
Apr 2014	12.64
Mar 2014	13.02
Feb 2014	13.02
Jan 2014	14.41
Dec 2013	14.35
Nov 2013	13.83
Oct 2013	13.83
Sep 2013	14.32
Aug 2013	14.53
Jul 2013	14.53
Jun 2013	16.12
May 2013	16.12
Apr 2013	13.51
Mar 2013	13.85
Feb 2013	13.56
Jan 2013	12.97
Dec 2012	11.99
Nov 2012	11.37
Oct 2012	11.37
Sep 2012	10.95
Aug 2012	10.95
Jul 2012	10.71
Jun 2012	10.71
May 2012	11.78
Apr 2012	12.46
Mar 2012	13.13
Feb 2012	12.51
Jan 2012	11.81
Dec 2011	11.64
Nov 2011	11.64
Oct 2011	11.33
Sep 2011	11.33
Aug 2011	11.75
Jul 2011	12.88
Jun 2011	13.11
May 2011	13.11
Apr 2011	11.03
Mar 2011	11.03
Feb 2011	13.61
Jan 2011	13.61
Dec 2010	13.06
Nov 2010	13.06
Oct 2010	12.81
Sep 2010	12.81
Aug 2010	13.90
Jul 2010	13.90
Jun 2010	14.64
May 2010	15.37
Apr 2010	17.58
Mar 2010	17.06
Feb 2010	17.48
Jan 2010	18.93
Dec 2009	19.09
Nov 2009	19.64
Oct 2009	21.12
Sep 2009	22.80
Aug 2009	25.92
Jul 2009	29.27
Jun 2009	29.74
May 2009	31.28
Apr 2009	28.27
Mar 2009	26.36
Feb 2009	21.81
Jan 2009	15
Dec 2008	14.46
Nov 2008	10.26
Oct 2008	9.77
Sep 2008	13.03
Aug 2008	14.12
Jul 2008	14.12
Jun 2008	15.18
May 2008	14.51
Apr 2008	12.73
Mar 2008	12.06
Feb 2008	12.07
Jan 2008	14.24
Dec 2007	14.81
Nov 2007	14.81
Oct 2007	16.10
Sep 2007	15.39
Aug 2007	16.12
Jul 2007	17.80
Jun 2007	17.80
May 2007	17.22
Apr 2007	17.35
Mar 2007	18.21
Feb 2007	17.84
Jan 2007	16.39
Dec 2006	16.39
Nov 2006	16.71
Oct 2006	17.48
Sep 2006	16.85
Aug 2006	17.43
Jul 2006	16.61
Jun 2006	16.16
May 2006	18.38
Apr 2006	19.63
Mar 2006	18.64
Feb 2006	19.14
Jan 2006	18.80
Dec 2005	17.97
Nov 2005	17.30
Oct 2005	16.72
Sep 2005	16
Aug 2005	15.32
Jul 2005	14.98
Jun 2005	14.98
May 2005	15.41
Apr 2005	15.89
Mar 2005	15.89
Feb 2005	15.77
Jan 2005	15.79
Dec 2004	16.54
Nov 2004	16.54
Oct 2004	15.97
Sep 2004	15.97
Aug 2004	17.06
Jul 2004	17.10
Jun 2004	17.10
May 2004	19.19
Apr 2004	19.19
Mar 2004	18.42
Feb 2004	18.42
Jan 2004	18.32
Dec 2003	18.38
Nov 2003	19.10
Oct 2003	21.23
Sep 2003	19.49
Aug 2003	19.49
Jul 2003	19.01
Jun 2003	18.32
May 2003	16.85
Apr 2003	16.53
Mar 2003	17.23
Feb 2003	18.73
Jan 2003	19.03
Dec 2002	19.03
Nov 2002	20.24
Oct 2002	20.24
Sep 2002	21.79
Aug 2002	22.45
Jul 2002	24.04
Jun 2002	25.63
May 2002	26.40
Apr 2002	27.83
Mar 2002	27.68
Feb 2002	26.91
Jan 2002	29.60
Dec 2001	27.41
Nov 2001	24.86
Oct 2001	23.20
Sep 2001	24.62
Aug 2001	25.20
Jul 2001	26.28
Jun 2001	26.28
May 2001	24.83
Apr 2001	24.25
Mar 2001	25.25
Feb 2001	25.85
Jan 2001	26.64
Dec 2000	28.75
Nov 2000	29.94
Oct 2000	31.23
Sep 2000	33.49
Aug 2000	35.95
Jul 2000	37.40
Jun 2000	38.15
May 2000	38.60
Apr 2000	38.60
Mar 2000	40.16
Feb 2000	42.85
Jan 2000	43.32
Dec 1999	43.94
Nov 1999	44.61
Oct 1999	44.76
Sep 1999	45.03
Aug 1999	46.70
Jul 1999	45.33
Jun 1999	45.52
May 1999	45.52
Apr 1999	46.09
Mar 1999	41.84
Feb 1999	36.35
Jan 1999	37.29
Dec 1998	36.10
Nov 1998	31.99
Oct 1998	31.06
Sep 1998	34.15
Aug 1998	32.85
Jul 1998	36.57
Jun 1998	33.15
May 1998	33.15
Apr 1998	32.43
Mar 1998	31.87
Feb 1998	30.49
Jan 1998	32.47
Dec 1997	33.89
Nov 1997	34.54
Oct 1997	33.96
Sep 1997	35.26
Aug 1997	36.04
Jul 1997	36.07
Jun 1997	35.30
May 1997	32.18
Apr 1997	31.03
Mar 1997	32.32
Feb 1997	33.62
Jan 1997	34.30
Dec 1996	38.30
Nov 1996	39.05
Oct 1996	38.74
Sep 1996	38.74
Aug 1996	40.29
Jul 1996	40.01
Jun 1996	32.74
May 1996	30.73
Apr 1996	35.88

Regional Peer Comparison

The table below shows a comparison of the current P/E Ratio (17.24) with regional peer markets.

Country	PE Ratio	Percentile Rank	Rating
China	14.52	92.50	Expensive
India	22.67	39.20	Undervalued
South Korea	12.83	95	Expensive
Indonesia	13.01	28.30	Undervalued
Singapore	15.34	93.30	Expensive

Definition: Trailing P/E Ratio

The trailing P/E ratio for Japan Stock Market shows how much investors are paying for one unit of the index's past earnings.
It is calculated as : P/E = Index level / Aggregated EPS
Aggregated EPS means the index's total earnings per share after weighting each stock in the index (usually by its market capitalization): Aggregated EPS = sum(weight_i * EPS_i). For trailing P/E, the EPS_i values are the actual earnings from the past 12 months.