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

20.65
Last update: 24 June 2024

The estimated P/E Ratio for S&P 500 Communication Services Sector is 20.65, calculated on 24 June 2024.

Considering the last 5 years, an average P/E interval is [17.93 , 22.63]. 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 June 2024 · P/E Ratio: 20.65
24 June 2024 · P/E Ratio: 20.65 · 1Y Average: 22.81 · 1 Std Dev range: [21.11 , 24.52] · 2 Std Dev range: [19.40 , 26.22]
24 June 2024 · P/E Ratio: 20.65 · 5Y Average: 20.28 · 1 Std Dev range: [17.93 , 22.63] · 2 Std Dev range: [15.58 , 24.99]
24 June 2024 · P/E Ratio: 20.65 · 10Y Average: 16.53 · 1 Std Dev range: [13.08 , 19.98] · 2 Std Dev range: [9.63 , 23.43]
24 June 2024 · P/E Ratio: 20.65 · 20Y Average: 15.52 · 1 Std Dev range: [13.23 , 17.81] · 2 Std Dev range: [10.94 , 20.10]
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 June 2024 · P/E Ratio: 20.65 · 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
( 20.65 )
Deviation
vs μ
Valuation
Last 1Y 22.81 1.71 [19.40 · 21.11 , 24.52 · 26.22]
-1.27 σ
Undervalued
Last 2Y 19.62 3.58 [12.45 · 16.03 , 23.20 · 26.78]
+0.29 σ
Fair
Last 3Y 19.64 2.81 [14.02 · 16.83 , 22.45 · 25.26]
+0.36 σ
Fair
Last 4Y 20.63 2.62 [15.39 · 18.01 , 23.25 · 25.87]
+0.01 σ
Fair
Last 5Y 20.28 2.35 [15.58 · 17.93 , 22.63 · 24.99]
+0.15 σ
Fair
Last 6Y 19.39 2.63 [14.12 · 16.76 , 22.02 · 24.65]
+0.48 σ
Fair
Last 7Y 18.26 3.39 [11.47 · 14.87 , 21.65 · 25.05]
+0.70 σ
Fair
Last 8Y 17.51 3.42 [10.67 · 14.09 , 20.92 · 24.34]
+0.92 σ
Fair
Last 9Y 16.84 3.52 [9.80 · 13.32 , 20.37 · 23.89]
+1.08 σ
Overvalued
Last 10Y 16.53 3.45 [9.63 · 13.08 , 19.98 · 23.43]
+1.19 σ
Overvalued
Last 11Y 16.22 3.25 [9.72 · 12.97 , 19.47 · 22.72]
+1.36 σ
Overvalued
Last 12Y 16.41 3.10 [10.21 · 13.31 , 19.51 · 22.60]
+1.37 σ
Overvalued
Last 13Y 16.30 2.87 [10.57 · 13.44 , 19.17 · 22.04]
+1.52 σ
Overvalued
Last 14Y 16.18 2.72 [10.73 · 13.45 , 18.90 · 21.63]
+1.64 σ
Overvalued
Last 15Y 16.02 2.70 [10.62 · 13.32 , 18.71 · 21.41]
+1.72 σ
Overvalued
Last 16Y 15.68 2.67 [10.34 · 13.01 , 18.35 · 21.01]
+1.86 σ
Overvalued
Last 17Y 15.56 2.56 [10.43 · 13.00 , 18.12 · 20.68]
+1.99 σ
Overvalued
Last 18Y 15.42 2.40 [10.62 · 13.02 , 17.83 · 20.23]
+2.17 σ
Expensive
Last 19Y 15.35 2.29 [10.77 · 13.06 , 17.64 · 19.94]
+2.31 σ
Expensive
Last 20Y 15.52 2.29 [10.94 · 13.23 , 17.81 · 20.10]
+2.24 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 +12.84% 24 Jun
Short Term Price vs SMA50 +3.51% 24 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.