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

24.27
Last update: 20 December 2024

The estimated P/E Ratio for S&P 500 Materials Sector is 24.27, calculated on 20 December 2024.

Considering the last 5 years, an average P/E interval is [16.02 , 21.07]. For this reason, the current P/E can be considered Expensive

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

20 December 2024 · P/E Ratio: 24.27
20 December 2024 · P/E Ratio: 24.27 · 1Y Average: 23.80 · 1 Std Dev range: [22.62 , 24.99] · 2 Std Dev range: [21.43 , 26.18]
20 December 2024 · P/E Ratio: 24.27 · 5Y Average: 18.54 · 1 Std Dev range: [16.02 , 21.07] · 2 Std Dev range: [13.50 , 23.59]
20 December 2024 · P/E Ratio: 24.27 · 10Y Average: 17.15 · 1 Std Dev range: [15.46 , 18.83] · 2 Std Dev range: [13.78 , 20.52]
20 December 2024 · P/E Ratio: 24.27 · 20Y Average: 15.54 · 1 Std Dev range: [13.71 , 17.36] · 2 Std Dev range: [11.89 , 19.19]
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".
20 December 2024 · P/E Ratio: 24.27 · 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
( 24.27 )		 Deviation
vs μ		 Valuation
Last 1Y 23.80 1.19 [21.43 · 22.62 , 24.99 · 26.18]
+0.39 σ
Fair
Last 2Y 20.18 3.27 [13.64 · 16.91 , 23.46 · 26.73]
+1.25 σ
Overvalued
Last 3Y 17.84 3.34 [11.17 · 14.50 , 21.18 · 24.52]
+1.92 σ
Overvalued
Last 4Y 17.92 2.74 [12.43 · 15.18 , 20.66 · 23.41]
+2.31 σ
Expensive
Last 5Y 18.54 2.52 [13.50 · 16.02 , 21.07 · 23.59]
+2.27 σ
Expensive
Last 6Y 17.84 2.29 [13.26 · 15.55 , 20.13 · 22.42]
+2.81 σ
Expensive
Last 7Y 17.49 2.14 [13.20 · 15.34 , 19.63 · 21.77]
+3.16 σ
Expensive
Last 8Y 17.46 1.82 [13.81 · 15.63 , 19.28 · 21.10]
+3.74 σ
Expensive
Last 9Y 17.28 1.69 [13.89 · 15.58 , 18.97 · 20.67]
+4.12 σ
Expensive
Last 10Y 17.15 1.68 [13.78 · 15.46 , 18.83 · 20.52]
+4.23 σ
Expensive
Last 11Y 16.98 1.52 [13.93 · 15.46 , 18.51 · 20.03]
+4.78 σ
Expensive
Last 12Y 16.68 1.62 [13.44 · 15.06 , 18.30 · 19.93]
+4.67 σ
Expensive
Last 13Y 16.31 1.75 [12.80 · 14.56 , 18.07 · 19.82]
+4.53 σ
Expensive
Last 14Y 16.02 1.86 [12.30 · 14.16 , 17.88 · 19.74]
+4.43 σ
Expensive
Last 15Y 15.95 1.86 [12.24 · 14.09 , 17.80 · 19.66]
+4.48 σ
Expensive
Last 16Y 16.06 1.95 [12.17 · 14.12 , 18.01 · 19.95]
+4.22 σ
Expensive
Last 17Y 15.88 1.95 [11.98 · 13.93 , 17.83 · 19.78]
+4.30 σ
Expensive
Last 18Y 15.75 1.85 [12.04 · 13.90 , 17.61 · 19.46]
+4.59 σ
Expensive
Last 19Y 15.60 1.86 [11.88 · 13.74 , 17.46 · 19.32]
+4.66 σ
Expensive
Last 20Y 15.54 1.83 [11.89 · 13.71 , 17.36 · 19.19]
+4.78 σ
Expensive

S&P 500 Materials Sector Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 -6.55% 20 Dec
Short Term Price vs SMA50 -8.10% 20 Dec
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.