S&P 500 Financials Sector: current P/E Ratio

18.10
Last update: 03 October 2024

The estimated P/E Ratio for S&P 500 Financials Sector is 18.10, calculated on 03 October 2024.

Considering the last 5 years, an average P/E interval is [12.82 , 15.25]. For this reason, the current P/E can be considered Expensive

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

03 October 2024 · P/E Ratio: 18.10
03 October 2024 · P/E Ratio: 18.10 · 1Y Average: 15.84 · 1 Std Dev range: [14.69 , 17.00] · 2 Std Dev range: [13.53 , 18.15]
03 October 2024 · P/E Ratio: 18.10 · 5Y Average: 14.03 · 1 Std Dev range: [12.82 , 15.25] · 2 Std Dev range: [11.60 , 16.47]
03 October 2024 · P/E Ratio: 18.10 · 10Y Average: 13.47 · 1 Std Dev range: [12.56 , 14.37] · 2 Std Dev range: [11.66 , 15.27]
03 October 2024 · P/E Ratio: 18.10 · 20Y Average: 12.64 · 1 Std Dev range: [11.52 , 13.76] · 2 Std Dev range: [10.39 , 14.88]
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 October 2024 · P/E Ratio: 18.10 · 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
( 18.10 )		 Deviation
vs μ		 Valuation
Last 1Y 15.84 1.16 [13.53 · 14.69 , 17.00 · 18.15]
+1.96 σ
Overvalued
Last 2Y 14.90 1.65 [11.60 · 13.25 , 16.55 · 18.20]
+1.94 σ
Overvalued
Last 3Y 14.26 1.51 [11.23 · 12.75 , 15.78 · 17.29]
+2.54 σ
Expensive
Last 4Y 14.15 1.25 [11.65 · 12.90 , 15.41 · 16.66]
+3.15 σ
Expensive
Last 5Y 14.03 1.22 [11.60 · 12.82 , 15.25 · 16.47]
+3.34 σ
Expensive
Last 6Y 13.49 1.36 [10.78 · 12.13 , 14.84 · 16.20]
+3.41 σ
Expensive
Last 7Y 13.46 1.22 [11.01 · 12.23 , 14.68 · 15.91]
+3.79 σ
Expensive
Last 8Y 13.39 1.08 [11.24 · 12.32 , 14.47 · 15.55]
+4.37 σ
Expensive
Last 9Y 13.39 0.99 [11.41 · 12.40 , 14.37 · 15.36]
+4.78 σ
Expensive
Last 10Y 13.47 0.90 [11.66 · 12.56 , 14.37 · 15.27]
+5.13 σ
Expensive
Last 11Y 13.41 0.84 [11.73 · 12.57 , 14.25 · 15.09]
+5.59 σ
Expensive
Last 12Y 13.27 0.89 [11.50 · 12.38 , 14.16 · 15.05]
+5.43 σ
Expensive
Last 13Y 13.07 1.00 [11.08 · 12.07 , 14.07 · 15.06]
+5.05 σ
Expensive
Last 14Y 12.92 1.06 [10.80 · 11.86 , 13.98 · 15.04]
+4.89 σ
Expensive
Last 15Y 12.99 1.11 [10.77 · 11.88 , 14.10 · 15.20]
+4.62 σ
Expensive
Last 16Y 12.94 1.16 [10.62 · 11.78 , 14.11 · 15.27]
+4.44 σ
Expensive
Last 17Y 12.82 1.21 [10.41 · 11.61 , 14.03 · 15.23]
+4.38 σ
Expensive
Last 18Y 12.75 1.17 [10.41 · 11.58 , 13.91 · 15.08]
+4.59 σ
Expensive
Last 19Y 12.68 1.15 [10.39 · 11.53 , 13.82 · 14.97]
+4.74 σ
Expensive
Last 20Y 12.64 1.12 [10.39 · 11.52 , 13.76 · 14.88]
+4.87 σ
Expensive

S&P 500 Financials Sector Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +8.62% 03 Oct
Short Term Price vs SMA50 +1.71% 03 Oct
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.