S&P 500 Communication Services Sector: current P/E Ratio

21.29
Last update: 20 December 2024

The estimated P/E Ratio for S&P 500 Communication Services Sector is 21.29, calculated on 20 December 2024.

Considering the last 5 years, an average P/E interval is [18.63 , 22.91]. For this reason, the current P/E can be considered Fair

P/E Ratio is calculated on the XLC Etf, whose benchmark is the S&P 500 Communication Services 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 Communication Services Sector P/E Ratio has changed over time. Furthermore, for some trailing timeframes, you can view the average P/E and standard deviation.

20 December 2024 · P/E Ratio: 21.29
20 December 2024 · P/E Ratio: 21.29 · 1Y Average: 21.53 · 1 Std Dev range: [20.61 , 22.44] · 2 Std Dev range: [19.70 , 23.35]
20 December 2024 · P/E Ratio: 21.29 · 5Y Average: 20.77 · 1 Std Dev range: [18.63 , 22.91] · 2 Std Dev range: [16.49 , 25.05]
20 December 2024 · P/E Ratio: 21.29 · 10Y Average: 17.03 · 1 Std Dev range: [13.48 , 20.58] · 2 Std Dev range: [9.93 , 24.12]
20 December 2024 · P/E Ratio: 21.29 · 20Y Average: 15.60 · 1 Std Dev range: [13.16 , 18.04] · 2 Std Dev range: [10.72 , 20.48]
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".
20 December 2024 · P/E Ratio: 21.29 · Last Periods metrics
Show all periods
Swipe left to see all data
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
( 21.29 )		 Deviation
vs μ		 Valuation
Last 1Y 21.53 0.91 [19.70 · 20.61 , 22.44 · 23.35]
-0.25 σ
Fair
Last 2Y 21.62 1.87 [17.88 · 19.75 , 23.49 · 25.36]
-0.17 σ
Fair
Last 3Y 19.59 2.80 [14.00 · 16.79 , 22.38 · 25.18]
+0.61 σ
Fair
Last 4Y 20.45 2.53 [15.40 · 17.92 , 22.97 · 25.50]
+0.34 σ
Fair
Last 5Y 20.77 2.14 [16.49 · 18.63 , 22.91 · 25.05]
+0.24 σ
Fair
Last 6Y 20.03 2.28 [15.47 · 17.75 , 22.31 · 24.59]
+0.55 σ
Fair
Last 7Y 19.04 3.00 [13.04 · 16.04 , 22.05 · 25.05]
+0.75 σ
Fair
Last 8Y 18.12 3.37 [11.37 · 14.74 , 21.49 · 24.87]
+0.94 σ
Fair
Last 9Y 17.47 3.49 [10.48 · 13.97 , 20.96 · 24.45]
+1.10 σ
Overvalued
Last 10Y 17.03 3.55 [9.93 · 13.48 , 20.58 · 24.13]
+1.20 σ
Overvalued
Last 11Y 16.56 3.45 [9.66 · 13.11 , 20.01 · 23.46]
+1.37 σ
Overvalued
Last 12Y 16.54 3.25 [10.04 · 13.29 , 19.80 · 23.05]
+1.46 σ
Overvalued
Last 13Y 16.59 3.06 [10.47 · 13.53 , 19.65 · 22.72]
+1.54 σ
Overvalued
Last 14Y 16.50 2.90 [10.70 · 13.60 , 19.39 · 22.29]
+1.66 σ
Overvalued
Last 15Y 16.37 2.83 [10.70 · 13.53 , 19.20 · 22.03]
+1.74 σ
Overvalued
Last 16Y 16.04 2.80 [10.43 · 13.23 , 18.84 · 21.64]
+1.88 σ
Overvalued
Last 17Y 15.79 2.79 [10.21 · 13.00 , 18.57 · 21.36]
+1.98 σ
Overvalued
Last 18Y 15.69 2.61 [10.46 · 13.07 , 18.30 · 20.91]
+2.15 σ
Expensive
Last 19Y 15.56 2.52 [10.52 · 13.04 , 18.08 · 20.60]
+2.28 σ
Expensive
Last 20Y 15.60 2.44 [10.72 · 13.16 , 18.04 · 20.48]
+2.33 σ
Expensive

S&P 500 Communication Services Sector Trend

Trend is evaluated considering the price of the XLC Etf and its 200/50-day moving averages (SMA).

Swipe left to see all data
Trend Indicator Valuation Margin
Long Term Price vs SMA200 +12.38% 20 Dec
Short Term Price vs SMA50 +2.22% 20 Dec
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.