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

20.35
Last update: 24 May 2024

The estimated P/E Ratio for S&P 500 Communication Services Sector is 20.35, calculated on 24 May 2024.

Considering the last 5 years, an average P/E interval is [17.85 , 22.61]. 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.

24 May 2024 · P/E Ratio: 20.35
24 May 2024 · P/E Ratio: 20.35 · 1Y Average: 23.19 · 1 Std Dev range: [21.69 , 24.69] · 2 Std Dev range: [20.19 , 26.19]
24 May 2024 · P/E Ratio: 20.35 · 5Y Average: 20.23 · 1 Std Dev range: [17.85 , 22.61] · 2 Std Dev range: [15.48 , 24.98]
24 May 2024 · P/E Ratio: 20.35 · 10Y Average: 16.45 · 1 Std Dev range: [13.01 , 19.90] · 2 Std Dev range: [9.56 , 23.34]
24 May 2024 · P/E Ratio: 20.35 · 20Y Average: 15.51 · 1 Std Dev range: [13.24 , 17.78] · 2 Std Dev range: [10.97 , 20.06]
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".
24 May 2024 · P/E Ratio: 20.35 · 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
( 20.35 )
Deviation
vs μ
Valuation
Last 1Y 23.19 1.50 [20.19 · 21.69 , 24.69 · 26.19]
-1.89 σ
Undervalued
Last 2Y 19.36 3.68 [12.00 · 15.68 , 23.05 · 26.73]
+0.27 σ
Fair
Last 3Y 19.72 2.86 [14.00 · 16.86 , 22.59 · 25.45]
+0.22 σ
Fair
Last 4Y 20.58 2.64 [15.30 · 17.94 , 23.22 · 25.86]
-0.09 σ
Fair
Last 5Y 20.23 2.38 [15.48 · 17.85 , 22.61 · 24.98]
+0.05 σ
Fair
Last 6Y 19.28 2.71 [13.85 · 16.56 , 21.99 · 24.71]
+0.40 σ
Fair
Last 7Y 18.15 3.43 [11.29 · 14.72 , 21.59 · 25.02]
+0.64 σ
Fair
Last 8Y 17.42 3.43 [10.56 · 13.99 , 20.85 · 24.27]
+0.86 σ
Fair
Last 9Y 16.77 3.52 [9.73 · 13.25 , 20.28 · 23.80]
+1.02 σ
Overvalued
Last 10Y 16.45 3.44 [9.56 · 13.01 , 19.90 · 23.34]
+1.13 σ
Overvalued
Last 11Y 16.21 3.23 [9.74 · 12.97 , 19.44 · 22.67]
+1.28 σ
Overvalued
Last 12Y 16.38 3.08 [10.23 · 13.31 , 19.46 · 22.54]
+1.29 σ
Overvalued
Last 13Y 16.27 2.84 [10.59 · 13.43 , 19.11 · 21.96]
+1.44 σ
Overvalued
Last 14Y 16.13 2.70 [10.72 · 13.43 , 18.84 · 21.54]
+1.56 σ
Overvalued
Last 15Y 15.97 2.68 [10.60 · 13.28 , 18.65 · 21.33]
+1.64 σ
Overvalued
Last 16Y 15.63 2.64 [10.35 · 12.99 , 18.28 · 20.92]
+1.78 σ
Overvalued
Last 17Y 15.53 2.53 [10.46 · 13.00 , 18.07 · 20.60]
+1.90 σ
Overvalued
Last 18Y 15.39 2.38 [10.64 · 13.01 , 17.76 · 20.14]
+2.09 σ
Expensive
Last 19Y 15.33 2.26 [10.81 · 13.07 , 17.59 · 19.85]
+2.22 σ
Expensive
Last 20Y 15.51 2.27 [10.97 · 13.24 , 17.78 · 20.06]
+2.13 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).

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +12.61% 24 May
Short Term Price vs SMA50 +2.12% 24 May
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.