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

32.86
Last update: 07 February 2025

The estimated P/E Ratio for S&P 500 Health Care Sector is 32.86, calculated on 07 February 2025.

Considering the last 5 years, an average P/E interval is [17.18 , 26.43]. For this reason, the current P/E can be considered Expensive

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 February 2025 · P/E Ratio: 32.86
07 February 2025 · P/E Ratio: 32.86 · 1Y Average: 32.75 · 1 Std Dev range: [31.96 , 33.54] · 2 Std Dev range: [31.17 , 34.33]
07 February 2025 · P/E Ratio: 32.86 · 5Y Average: 21.81 · 1 Std Dev range: [17.18 , 26.43] · 2 Std Dev range: [12.56 , 31.06]
07 February 2025 · P/E Ratio: 32.86 · 10Y Average: 19.92 · 1 Std Dev range: [17.90 , 21.94] · 2 Std Dev range: [15.88 , 23.96]
07 February 2025 · P/E Ratio: 32.86 · 20Y Average: 17.43 · 1 Std Dev range: [15.02 , 19.84] · 2 Std Dev range: [12.61 , 22.25]
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 February 2025 · P/E Ratio: 32.86 · 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
( 32.86 )
Deviation
vs μ
Valuation
Last 1Y 32.75 0.79 [31.17 · 31.96 , 33.54 · 34.33]
+0.13 σ
Fair
Last 2Y 28.38 4.03 [20.32 · 24.35 , 32.41 · 36.44]
+1.11 σ
Overvalued
Last 3Y 24.56 5.06 [14.44 · 19.50 , 29.63 · 34.69]
+1.64 σ
Overvalued
Last 4Y 22.71 4.79 [13.13 · 17.92 , 27.50 · 32.30]
+2.12 σ
Expensive
Last 5Y 21.81 4.63 [12.56 · 17.18 , 26.43 · 31.06]
+2.39 σ
Expensive
Last 6Y 20.95 3.79 [13.36 · 17.15 , 24.74 · 28.53]
+3.14 σ
Expensive
Last 7Y 20.47 3.27 [13.92 · 17.19 , 23.74 · 27.01]
+3.78 σ
Expensive
Last 8Y 20.02 2.47 [15.08 · 17.55 , 22.49 · 24.96]
+5.20 σ
Expensive
Last 9Y 19.75 2.08 [15.59 · 17.67 , 21.84 · 23.92]
+6.29 σ
Expensive
Last 10Y 19.92 2.02 [15.88 · 17.90 , 21.94 · 23.96]
+6.41 σ
Expensive
Last 11Y 19.72 1.60 [16.52 · 18.12 , 21.31 · 22.91]
+8.23 σ
Expensive
Last 12Y 19.49 1.53 [16.43 · 17.96 , 21.02 · 22.54]
+8.75 σ
Expensive
Last 13Y 19.19 1.44 [16.30 · 17.74 , 20.63 · 22.07]
+9.47 σ
Expensive
Last 14Y 18.79 1.78 [15.23 · 17.01 , 20.57 · 22.35]
+7.90 σ
Expensive
Last 15Y 18.40 2.25 [13.91 · 16.15 , 20.64 · 22.89]
+6.44 σ
Expensive
Last 16Y 17.89 2.61 [12.67 · 15.28 , 20.50 · 23.11]
+5.73 σ
Expensive
Last 17Y 17.53 2.79 [11.96 · 14.75 , 20.32 · 23.10]
+5.50 σ
Expensive
Last 18Y 17.41 2.66 [12.08 · 14.75 , 20.07 · 22.73]
+5.80 σ
Expensive
Last 19Y 17.37 2.54 [12.28 · 14.82 , 19.91 · 22.45]
+6.09 σ
Expensive
Last 20Y 17.43 2.41 [12.61 · 15.02 , 19.84 · 22.25]
+6.40 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).

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 -0.48% 07 Feb
Short Term Price vs SMA50 +2.65% 07 Feb
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.