S&P 500 Communication Services Sector: current P/E Ratio

22.10
Last update: 20 November 2024

The estimated P/E Ratio for S&P 500 Communication Services Sector is 22.10, calculated on 20 November 2024.

Considering the last 5 years, an average P/E interval is [18.49 , 22.85]. For this reason, the current P/E can be considered Fair

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

20 November 2024 · P/E Ratio: 22.10
20 November 2024 · P/E Ratio: 22.10 · 1Y Average: 21.27 · 1 Std Dev range: [20.31 , 22.24] · 2 Std Dev range: [19.35 , 23.20]
20 November 2024 · P/E Ratio: 22.10 · 5Y Average: 20.67 · 1 Std Dev range: [18.49 , 22.85] · 2 Std Dev range: [16.32 , 25.02]
20 November 2024 · P/E Ratio: 22.10 · 10Y Average: 16.93 · 1 Std Dev range: [13.40 , 20.46] · 2 Std Dev range: [9.88 , 23.99]
20 November 2024 · P/E Ratio: 22.10 · 20Y Average: 15.58 · 1 Std Dev range: [13.18 , 17.99] · 2 Std Dev range: [10.77 , 20.40]
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 November 2024 · P/E Ratio: 22.10 · 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
( 22.10 )		 Deviation
vs μ		 Valuation
Last 1Y 21.27 0.96 [19.35 · 20.31 , 22.24 · 23.20]
+0.86 σ
Fair
Last 2Y 21.25 2.33 [16.58 · 18.92 , 23.58 · 25.91]
+0.37 σ
Fair
Last 3Y 19.55 2.76 [14.02 · 16.78 , 22.31 · 25.08]
+0.92 σ
Fair
Last 4Y 20.44 2.52 [15.40 · 17.92 , 22.96 · 25.48]
+0.66 σ
Fair
Last 5Y 20.67 2.18 [16.32 · 18.49 , 22.85 · 25.02]
+0.66 σ
Fair
Last 6Y 19.94 2.29 [15.37 · 17.65 , 22.23 · 24.51]
+0.95 σ
Fair
Last 7Y 18.89 3.10 [12.68 · 15.78 , 21.99 · 25.09]
+1.04 σ
Overvalued
Last 8Y 17.99 3.40 [11.19 · 14.59 , 21.39 · 24.78]
+1.21 σ
Overvalued
Last 9Y 17.34 3.50 [10.34 · 13.84 , 20.85 · 24.35]
+1.36 σ
Overvalued
Last 10Y 16.93 3.53 [9.88 · 13.40 , 20.46 · 23.99]
+1.47 σ
Overvalued
Last 11Y 16.49 3.41 [9.68 · 13.08 , 19.90 · 23.31]
+1.65 σ
Overvalued
Last 12Y 16.50 3.21 [10.08 · 13.29 , 19.71 · 22.92]
+1.75 σ
Overvalued
Last 13Y 16.54 3.02 [10.50 · 13.52 , 19.56 · 22.58]
+1.84 σ
Overvalued
Last 14Y 16.44 2.85 [10.74 · 13.59 , 19.30 · 22.15]
+1.98 σ
Overvalued
Last 15Y 16.30 2.80 [10.71 · 13.51 , 19.10 · 21.90]
+2.07 σ
Expensive
Last 16Y 15.97 2.77 [10.43 · 13.20 , 18.74 · 21.51]
+2.21 σ
Expensive
Last 17Y 15.74 2.74 [10.25 · 12.99 , 18.48 · 21.22]
+2.32 σ
Expensive
Last 18Y 15.64 2.57 [10.51 · 13.07 , 18.21 · 20.78]
+2.52 σ
Expensive
Last 19Y 15.51 2.48 [10.56 · 13.04 , 17.99 · 20.47]
+2.66 σ
Expensive
Last 20Y 15.58 2.41 [10.77 · 13.18 , 17.99 · 20.40]
+2.71 σ
Expensive

S&P 500 Communication Services Sector Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +14.44% 20 Nov
Short Term Price vs SMA50 +6.28% 20 Nov
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.