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

32.88
Last update: 24 May 2024

The estimated P/E Ratio for S&P 500 Health Care Sector is 32.88, calculated on 24 May 2024.

Considering the last 5 years, an average P/E interval is [17.78 , 21.70]. 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.

24 May 2024 · P/E Ratio: 32.88
24 May 2024 · P/E Ratio: 32.88 · 1Y Average: 25.97 · 1 Std Dev range: [23.84 , 28.10] · 2 Std Dev range: [21.71 , 30.23]
24 May 2024 · P/E Ratio: 32.88 · 5Y Average: 19.74 · 1 Std Dev range: [17.78 , 21.70] · 2 Std Dev range: [15.83 , 23.65]
24 May 2024 · P/E Ratio: 32.88 · 10Y Average: 19.40 · 1 Std Dev range: [18.37 , 20.43] · 2 Std Dev range: [17.34 , 21.46]
24 May 2024 · P/E Ratio: 32.88 · 20Y Average: 17.24 · 1 Std Dev range: [14.99 , 19.48] · 2 Std Dev range: [12.75 , 21.73]
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: 32.88 · 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
( 32.88 )
Deviation
vs μ
Valuation
Last 1Y 25.97 2.13 [21.71 · 23.84 , 28.10 · 30.23]
+3.24 σ
Expensive
Last 2Y 22.22 3.19 [15.83 · 19.03 , 25.42 · 28.61]
+3.34 σ
Expensive
Last 3Y 20.71 2.33 [16.05 · 18.38 , 23.04 · 25.37]
+5.22 σ
Expensive
Last 4Y 19.82 2.17 [15.49 · 17.65 , 21.99 · 24.16]
+6.02 σ
Expensive
Last 5Y 19.74 1.96 [15.83 · 17.78 , 21.70 · 23.65]
+6.71 σ
Expensive
Last 6Y 19.42 1.50 [16.42 · 17.92 , 20.91 · 22.41]
+8.99 σ
Expensive
Last 7Y 19.36 1.24 [16.87 · 18.11 , 20.60 · 21.84]
+10.87 σ
Expensive
Last 8Y 19.18 0.94 [17.31 · 18.24 , 20.12 · 21.06]
+14.60 σ
Expensive
Last 9Y 19.26 0.97 [17.32 · 18.29 , 20.24 · 21.21]
+13.99 σ
Expensive
Last 10Y 19.40 1.03 [17.34 · 18.37 , 20.43 · 21.46]
+13.10 σ
Expensive
Last 11Y 19.21 1.00 [17.21 · 18.21 , 20.21 · 21.21]
+13.69 σ
Expensive
Last 12Y 19.00 1.09 [16.82 · 17.91 , 20.08 · 21.17]
+12.77 σ
Expensive
Last 13Y 18.63 1.44 [15.75 · 17.19 , 20.07 · 21.51]
+9.89 σ
Expensive
Last 14Y 18.17 2.01 [14.16 · 16.16 , 20.17 · 22.18]
+7.33 σ
Expensive
Last 15Y 17.77 2.43 [12.91 · 15.34 , 20.20 · 22.63]
+6.22 σ
Expensive
Last 16Y 17.33 2.71 [11.90 · 14.61 , 20.04 · 22.75]
+5.73 σ
Expensive
Last 17Y 17.21 2.62 [11.97 · 14.59 , 19.83 · 22.45]
+5.98 σ
Expensive
Last 18Y 17.15 2.49 [12.17 · 14.66 , 19.63 · 22.12]
+6.33 σ
Expensive
Last 19Y 17.17 2.37 [12.43 · 14.80 , 19.54 · 21.91]
+6.63 σ
Expensive
Last 20Y 17.24 2.25 [12.75 · 14.99 , 19.48 · 21.73]
+6.96 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 +5.36% 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.