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

15.93
Last update: 24 May 2024

The estimated P/E Ratio for S&P 500 Financials Sector is 15.93, calculated on 24 May 2024.

Considering the last 5 years, an average P/E interval is [12.44 , 14.67]. 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.

24 May 2024 · P/E Ratio: 15.93
24 May 2024 · P/E Ratio: 15.93 · 1Y Average: 15.24 · 1 Std Dev range: [13.93 , 16.54] · 2 Std Dev range: [12.63 , 17.84]
24 May 2024 · P/E Ratio: 15.93 · 5Y Average: 13.56 · 1 Std Dev range: [12.44 , 14.67] · 2 Std Dev range: [11.33 , 15.78]
24 May 2024 · P/E Ratio: 15.93 · 10Y Average: 13.39 · 1 Std Dev range: [12.56 , 14.22] · 2 Std Dev range: [11.73 , 15.05]
24 May 2024 · P/E Ratio: 15.93 · 20Y Average: 12.56 · 1 Std Dev range: [11.49 , 13.63] · 2 Std Dev range: [10.43 , 14.70]
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: 15.93 · 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
( 15.93 )
Deviation
vs μ
Valuation
Last 1Y 15.24 1.30 [12.63 · 13.93 , 16.54 · 17.84]
+0.53 σ
Fair
Last 2Y 13.70 1.62 [10.46 · 12.08 , 15.31 · 16.93]
+1.38 σ
Overvalued
Last 3Y 13.88 1.15 [11.58 · 12.73 , 15.02 · 16.17]
+1.79 σ
Overvalued
Last 4Y 13.90 0.96 [11.98 · 12.94 , 14.85 · 15.81]
+2.12 σ
Expensive
Last 5Y 13.56 1.11 [11.33 · 12.44 , 14.67 · 15.78]
+2.13 σ
Expensive
Last 6Y 13.20 1.15 [10.90 · 12.05 , 14.35 · 15.50]
+2.37 σ
Expensive
Last 7Y 13.31 1.06 [11.19 · 12.25 , 14.36 · 15.42]
+2.47 σ
Expensive
Last 8Y 13.29 0.98 [11.34 · 12.32 , 14.27 · 15.24]
+2.70 σ
Expensive
Last 9Y 13.31 0.91 [11.49 · 12.40 , 14.22 · 15.13]
+2.87 σ
Expensive
Last 10Y 13.39 0.83 [11.73 · 12.56 , 14.22 · 15.05]
+3.05 σ
Expensive
Last 11Y 13.30 0.79 [11.73 · 12.51 , 14.09 · 14.87]
+3.34 σ
Expensive
Last 12Y 13.12 0.89 [11.33 · 12.23 , 14.02 · 14.91]
+3.13 σ
Expensive
Last 13Y 12.92 1.01 [10.91 · 11.91 , 13.92 · 14.93]
+2.99 σ
Expensive
Last 14Y 12.80 1.03 [10.75 · 11.77 , 13.83 · 14.85]
+3.04 σ
Expensive
Last 15Y 12.98 1.09 [10.79 · 11.89 , 14.07 · 15.16]
+2.70 σ
Expensive
Last 16Y 12.85 1.12 [10.60 · 11.72 , 13.97 · 15.09]
+2.74 σ
Expensive
Last 17Y 12.72 1.17 [10.37 · 11.54 , 13.89 · 15.06]
+2.74 σ
Expensive
Last 18Y 12.65 1.12 [10.40 · 11.53 , 13.77 · 14.90]
+2.91 σ
Expensive
Last 19Y 12.58 1.10 [10.38 · 11.48 , 13.68 · 14.79]
+3.04 σ
Expensive
Last 20Y 12.56 1.07 [10.43 · 11.49 , 13.63 · 14.70]
+3.15 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 +11.45% 24 May
Short Term Price vs SMA50 +0.98% 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.