S&P 500 Health Care Sector: current P/E Ratio

30.08
Last update: 07 March 2025

The estimated P/E Ratio for S&P 500 Health Care Sector is 30.08, calculated on 07 March 2025.

Considering the last 5 years, an average P/E interval is [17.20 , 26.92]. For this reason, the current P/E can be considered Overvalued

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

07 March 2025 · P/E Ratio: 30.08
07 March 2025 · P/E Ratio: 30.08 · 1Y Average: 32.87 · 1 Std Dev range: [32.23 , 33.50] · 2 Std Dev range: [31.59 , 34.14]
07 March 2025 · P/E Ratio: 30.08 · 5Y Average: 22.06 · 1 Std Dev range: [17.20 , 26.92] · 2 Std Dev range: [12.34 , 31.78]
07 March 2025 · P/E Ratio: 30.08 · 10Y Average: 20.01 · 1 Std Dev range: [17.74 , 22.28] · 2 Std Dev range: [15.47 , 24.55]
07 March 2025 · P/E Ratio: 30.08 · 20Y Average: 17.45 · 1 Std Dev range: [15.02 , 19.88] · 2 Std Dev range: [12.59 , 22.31]
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".
07 March 2025 · P/E Ratio: 30.08 · Last Periods metrics
Show all periods
Swipe left to see all data
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
( 30.08 )		 Deviation
vs μ		 Valuation
Last 1Y 32.87 0.64 [31.59 · 32.23 , 33.50 · 34.14]
-4.37 σ
Cheap
Last 2Y 28.93 3.82 [21.30 · 25.11 , 32.75 · 36.56]
+0.30 σ
Fair
Last 3Y 25.03 5.16 [14.70 · 19.86 , 30.19 · 35.35]
+0.98 σ
Fair
Last 4Y 23.09 4.96 [13.16 · 18.13 , 28.06 · 33.02]
+1.41 σ
Overvalued
Last 5Y 22.06 4.86 [12.34 · 17.20 , 26.92 · 31.78]
+1.65 σ
Overvalued
Last 6Y 21.18 4.07 [13.04 · 17.11 , 25.25 · 29.32]
+2.19 σ
Expensive
Last 7Y 20.66 3.57 [13.52 · 17.09 , 24.23 · 27.80]
+2.64 σ
Expensive
Last 8Y 20.19 2.78 [14.62 · 17.41 , 22.97 · 25.75]
+3.56 σ
Expensive
Last 9Y 19.90 2.36 [15.18 · 17.54 , 22.25 · 24.61]
+4.32 σ
Expensive
Last 10Y 20.01 2.27 [15.47 · 17.74 , 22.28 · 24.55]
+4.43 σ
Expensive
Last 11Y 19.81 1.78 [16.24 · 18.02 , 21.59 · 23.37]
+5.76 σ
Expensive
Last 12Y 19.56 1.61 [16.33 · 17.94 , 21.17 · 22.78]
+6.53 σ
Expensive
Last 13Y 19.25 1.52 [16.22 · 17.74 , 20.77 · 22.29]
+7.14 σ
Expensive
Last 14Y 18.87 1.79 [15.29 · 17.08 , 20.66 · 22.45]
+6.26 σ
Expensive
Last 15Y 18.48 2.25 [13.99 · 16.23 , 20.73 · 22.97]
+5.17 σ
Expensive
Last 16Y 17.96 2.60 [12.75 · 15.36 , 20.57 · 23.17]
+4.65 σ
Expensive
Last 17Y 17.58 2.81 [11.96 · 14.77 , 20.39 · 23.20]
+4.45 σ
Expensive
Last 18Y 17.44 2.68 [12.07 · 14.76 , 20.12 · 22.81]
+4.71 σ
Expensive
Last 19Y 17.39 2.56 [12.27 · 14.83 , 19.95 · 22.52]
+4.95 σ
Expensive
Last 20Y 17.45 2.43 [12.59 · 15.02 , 19.88 · 22.31]
+5.20 σ
Expensive

S&P 500 Health Care Sector Trend

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

Swipe left to see all data
Trend Indicator Valuation Margin
Long Term Price vs SMA200 +1.13% 07 Mar
Short Term Price vs SMA50 +3.47% 07 Mar
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.