The estimated P/E Ratio for S&P 500 Information Technology Sector is 36.03, calculated on 26 July 2024.
Considering the last 5 years, an average P/E interval is [23.90 , 30.28]. For this reason, the current P/E can be considered Expensive
P/E Ratio is calculated on the XLK Etf, whose benchmark is the S&P 500 Information Technology 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 Information Technology Sector P/E Ratio has changed over time. Furthermore, for some trailing timeframes, you can view the average P/E and standard deviation.
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".
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 ( 36.03 ) |
Deviation vs μ |
Valuation |
Last 1Y | 32.60 | 1.62 | [29.35 · 30.98 , 34.23 · 35.85] |
|
+2.11 σ |
Expensive
|
Last 2Y | 29.45 | 3.52 | [22.40 · 25.93 , 32.98 · 36.50] |
|
+1.87 σ |
Overvalued
|
Last 3Y | 29.21 | 2.67 | [23.86 · 26.53 , 31.88 · 34.55] |
|
+2.56 σ |
Expensive
|
Last 4Y | 28.21 | 2.58 | [23.05 · 25.63 , 30.79 · 33.37] |
|
+3.03 σ |
Expensive
|
Last 5Y | 27.09 | 3.19 | [20.71 · 23.90 , 30.28 · 33.47] |
|
+2.80 σ |
Expensive
|
Last 6Y | 25.33 | 4.11 | [17.10 · 21.21 , 29.44 · 33.56] |
|
+2.60 σ |
Expensive
|
Last 7Y | 24.11 | 4.43 | [15.25 · 19.68 , 28.54 · 32.97] |
|
+2.69 σ |
Expensive
|
Last 8Y | 22.93 | 4.55 | [13.83 · 18.38 , 27.48 · 32.03] |
|
+2.88 σ |
Expensive
|
Last 9Y | 22.01 | 4.68 | [12.64 · 17.32 , 26.69 · 31.38] |
|
+2.99 σ |
Expensive
|
Last 10Y | 21.37 | 4.82 | [11.73 · 16.55 , 26.18 · 31.00] |
|
+3.04 σ |
Expensive
|
Last 11Y | 20.53 | 4.77 | [11.00 · 15.77 , 25.30 · 30.07] |
|
+3.25 σ |
Expensive
|
Last 12Y | 19.83 | 4.84 | [10.16 · 15.00 , 24.67 · 29.51] |
|
+3.35 σ |
Expensive
|
Last 13Y | 19.02 | 4.92 | [9.17 · 14.10 , 23.94 · 28.87] |
|
+3.46 σ |
Expensive
|
Last 14Y | 18.44 | 4.94 | [8.57 · 13.51 , 23.38 · 28.32] |
|
+3.56 σ |
Expensive
|
Last 15Y | 18.25 | 4.81 | [8.64 · 13.45 , 23.06 · 27.87] |
|
+3.70 σ |
Expensive
|
Last 16Y | 17.80 | 4.64 | [8.53 · 13.16 , 22.44 · 27.07] |
|
+3.93 σ |
Expensive
|
Last 17Y | 17.74 | 4.41 | [8.93 · 13.34 , 22.15 · 26.56] |
|
+4.15 σ |
Expensive
|
Last 18Y | 17.74 | 4.12 | [9.50 · 13.62 , 21.86 · 25.98] |
|
+4.44 σ |
Expensive
|
Last 19Y | 17.81 | 3.93 | [9.95 · 13.88 , 21.74 · 25.67] |
|
+4.64 σ |
Expensive
|
Last 20Y | 18.05 | 3.85 | [10.35 · 14.20 , 21.89 · 25.74] |
|
+4.68 σ |
Expensive
|
S&P 500 Information Technology Sector Trend
Trend is evaluated considering the price of the XLK Etf and its 200/50-day moving averages (SMA).
Trend | Indicator | Valuation | Margin | |
---|---|---|---|---|
Long Term | Price vs SMA200 | +7.73% | 26 Jul | |
Short Term | Price vs SMA50 | -2.76% | 26 Jul |