32.73
Last update: 03 June 2024
The estimated P/E Ratio for S&P 500 Information Technology Sector is 32.73, calculated on 03 June 2024.
Considering the last 5 years, an average P/E interval is [23.64 , 30.02]. For this reason, the current P/E can be considered Overvalued
P/E Ratio is calculated on the XLK Etf, whose benchmark is the S&P 500 Information Technology Sector.
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 S&P 500 Information Technology Sector P/E Ratio has changed over time. Furthermore, for some trailing timeframes, you can view the average P/E and standard deviation.
03 June 2024 · P/E Ratio: 32.73
03 June 2024 · P/E Ratio: 32.73 · 1Y Average: 32.43 · 1 Std Dev range: [30.89 , 33.98] · 2 Std Dev range: [29.34 , 35.53]
03 June 2024 · P/E Ratio: 32.73 · 5Y Average: 26.83 · 1 Std Dev range: [23.64 , 30.02] · 2 Std Dev range: [20.45 , 33.22]
03 June 2024 · P/E Ratio: 32.73 · 10Y Average: 21.20 · 1 Std Dev range: [16.46 , 25.95] · 2 Std Dev range: [11.71 , 30.70]
03 June 2024 · P/E Ratio: 32.73 · 20Y Average: 18.01 · 1 Std Dev range: [14.23 , 21.80] · 2 Std Dev range: [10.44 , 25.58]
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".
03 June 2024 · P/E Ratio: 32.73 · 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 ( 32.73 ) | Deviation vs μ | Valuation |
| Last 1Y | 32.43 | 1.55 | [29.34 · 30.89 , 33.98 · 35.53] | | +0.19 σ | Fair |
| Last 2Y | 29.03 | 3.46 | [22.11 · 25.57 , 32.49 · 35.95] | | +1.07 σ | Overvalued |
| Last 3Y | 28.88 | 2.66 | [23.57 · 26.22 , 31.54 · 34.19] | | +1.45 σ | Overvalued |
| Last 4Y | 27.98 | 2.51 | [22.96 · 25.47 , 30.49 · 33.01] | | +1.89 σ | Overvalued |
| Last 5Y | 26.83 | 3.19 | [20.45 · 23.64 , 30.02 · 33.22] | | +1.85 σ | Overvalued |
| Last 6Y | 25.08 | 4.10 | [16.88 · 20.98 , 29.17 · 33.27] | | +1.87 σ | Overvalued |
| Last 7Y | 23.90 | 4.36 | [15.17 · 19.54 , 28.26 · 32.63] | | +2.03 σ | Expensive |
| Last 8Y | 22.74 | 4.50 | [13.74 · 18.24 , 27.24 · 31.73] | | +2.22 σ | Expensive |
| Last 9Y | 21.83 | 4.62 | [12.59 · 17.21 , 26.45 · 31.08] | | +2.36 σ | Expensive |
| Last 10Y | 21.20 | 4.75 | [11.71 · 16.46 , 25.95 · 30.70] | | +2.43 σ | Expensive |
| Last 11Y | 20.39 | 4.70 | [10.98 · 15.68 , 25.09 · 29.79] | | +2.63 σ | Expensive |
| Last 12Y | 19.68 | 4.78 | [10.13 · 14.91 , 24.46 · 29.24] | | +2.73 σ | Expensive |
| Last 13Y | 18.88 | 4.88 | [9.13 · 14.00 , 23.76 · 28.63] | | +2.84 σ | Expensive |
| Last 14Y | 18.32 | 4.87 | [8.57 · 13.45 , 23.20 · 28.07] | | +2.96 σ | Expensive |
| Last 15Y | 18.16 | 4.73 | [8.71 · 13.43 , 22.89 · 27.61] | | +3.08 σ | Expensive |
| Last 16Y | 17.72 | 4.55 | [8.62 · 13.17 , 22.27 · 26.82] | | +3.30 σ | Expensive |
| Last 17Y | 17.69 | 4.32 | [9.04 · 13.37 , 22.01 · 26.33] | | +3.48 σ | Expensive |
| Last 18Y | 17.68 | 4.04 | [9.60 · 13.64 , 21.72 · 25.76] | | +3.73 σ | Expensive |
| Last 19Y | 17.77 | 3.85 | [10.06 · 13.91 , 21.62 · 25.47] | | +3.88 σ | Expensive |
| Last 20Y | 18.01 | 3.78 | [10.44 · 14.23 , 21.80 · 25.58] | | +3.89 σ | Expensive |
S&P 500 Information Technology Sector Trend
Trend is evaluated considering the price of the XLK Etf and its 200/50-day moving averages (SMA).
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| Trend | Indicator | Valuation | Margin | |
|---|---|---|---|---|
| Long Term | Price vs SMA200 | +10.76% | 03 Jun | |
| Short Term | Price vs SMA50 | +2.39% | 03 Jun |
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.
COUNTRIES
S&P 500 SECTORS
| Trend | P/E | ||
|---|---|---|---|
| Health Care | 32.94 | ||
| Information Technology | 32.73 | ||
| Real Estate | 32.69 | ||
| Industrials | 24.70 | ||
| Consumer Discretionary | 24.65 | ||
| Consumer Staples | 23.91 | ||
| Materials | 23.29 | ||
| Communication Services | 20.51 | ||
| Utilities | 19.58 | ||
| Financials | 15.84 | ||
| Energy | 13.00 | ||
