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

19.42
Last update: 26 July 2024

The estimated P/E Ratio for S&P 500 Communication Services Sector is 19.42, calculated on 26 July 2024.

Considering the last 5 years, an average P/E interval is [18.06 , 22.66]. 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.

26 July 2024 · P/E Ratio: 19.42
26 July 2024 · P/E Ratio: 19.42 · 1Y Average: 22.31 · 1 Std Dev range: [20.76 , 23.86] · 2 Std Dev range: [19.21 , 25.41]
26 July 2024 · P/E Ratio: 19.42 · 5Y Average: 20.36 · 1 Std Dev range: [18.06 , 22.66] · 2 Std Dev range: [15.76 , 24.97]
26 July 2024 · P/E Ratio: 19.42 · 10Y Average: 16.61 · 1 Std Dev range: [13.15 , 20.07] · 2 Std Dev range: [9.69 , 23.53]
26 July 2024 · P/E Ratio: 19.42 · 20Y Average: 15.53 · 1 Std Dev range: [13.22 , 17.85] · 2 Std Dev range: [10.91 , 20.16]
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".
26 July 2024 · P/E Ratio: 19.42 · 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
( 19.42 )		 Deviation
vs μ		 Valuation
Last 1Y 22.31 1.55 [19.21 · 20.76 , 23.86 · 25.41]
-1.87 σ
Undervalued
Last 2Y 19.92 3.43 [13.07 · 16.49 , 23.34 · 26.77]
-0.15 σ
Fair
Last 3Y 19.61 2.79 [14.03 · 16.82 , 22.41 · 25.20]
-0.07 σ
Fair
Last 4Y 20.60 2.61 [15.37 · 17.99 , 23.22 · 25.83]
-0.45 σ
Fair
Last 5Y 20.36 2.30 [15.76 · 18.06 , 22.66 · 24.97]
-0.41 σ
Fair
Last 6Y 19.50 2.56 [14.39 · 16.94 , 22.05 · 24.61]
-0.03 σ
Fair
Last 7Y 18.38 3.34 [11.70 · 15.04 , 21.72 · 25.06]
+0.31 σ
Fair
Last 8Y 17.60 3.41 [10.79 · 14.20 , 21.01 · 24.41]
+0.53 σ
Fair
Last 9Y 16.93 3.53 [9.87 · 13.40 , 20.46 · 23.99]
+0.71 σ
Fair
Last 10Y 16.61 3.46 [9.69 · 13.15 , 20.07 · 23.53]
+0.81 σ
Fair
Last 11Y 16.25 3.28 [9.70 · 12.97 , 19.52 · 22.80]
+0.97 σ
Fair
Last 12Y 16.43 3.12 [10.19 · 13.31 , 19.55 · 22.67]
+0.96 σ
Fair
Last 13Y 16.34 2.89 [10.55 · 13.45 , 19.23 · 22.13]
+1.06 σ
Overvalued
Last 14Y 16.23 2.74 [10.74 · 13.49 , 18.98 · 21.72]
+1.16 σ
Overvalued
Last 15Y 16.07 2.71 [10.64 · 13.36 , 18.79 · 21.50]
+1.23 σ
Overvalued
Last 16Y 15.73 2.69 [10.35 · 13.04 , 18.42 · 21.11]
+1.37 σ
Overvalued
Last 17Y 15.59 2.59 [10.40 · 12.99 , 18.18 · 20.78]
+1.48 σ
Overvalued
Last 18Y 15.47 2.43 [10.61 · 13.04 , 17.90 · 20.33]
+1.62 σ
Overvalued
Last 19Y 15.38 2.33 [10.73 · 13.06 , 17.71 · 20.03]
+1.74 σ
Overvalued
Last 20Y 15.53 2.31 [10.91 · 13.22 , 17.85 · 20.16]
+1.68 σ
Overvalued

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 +7.93% 26 Jul
Short Term Price vs SMA50 -1.12% 26 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.