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

21.84
Last update: 17 January 2025

The estimated P/E Ratio for S&P 500 Communication Services Sector is 21.84, calculated on 17 January 2025.

Considering the last 5 years, an average P/E interval is [18.72 , 22.94]. 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.

17 January 2025 · P/E Ratio: 21.84
17 January 2025 · P/E Ratio: 21.84 · 1Y Average: 21.38 · 1 Std Dev range: [20.51 , 22.25] · 2 Std Dev range: [19.64 , 23.12]
17 January 2025 · P/E Ratio: 21.84 · 5Y Average: 20.83 · 1 Std Dev range: [18.72 , 22.94] · 2 Std Dev range: [16.61 , 25.05]
17 January 2025 · P/E Ratio: 21.84 · 10Y Average: 17.11 · 1 Std Dev range: [13.56 , 20.66] · 2 Std Dev range: [10.02 , 24.21]
17 January 2025 · P/E Ratio: 21.84 · 20Y Average: 15.62 · 1 Std Dev range: [13.15 , 18.09] · 2 Std Dev range: [10.68 , 20.55]
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".
17 January 2025 · P/E Ratio: 21.84 · 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
( 21.84 )		 Deviation
vs μ		 Valuation
Last 1Y 21.38 0.87 [19.64 · 20.51 , 22.25 · 23.12]
+0.53 σ
Fair
Last 2Y 21.85 1.47 [18.90 · 20.38 , 23.32 · 24.80]
-0.01 σ
Fair
Last 3Y 19.61 2.81 [14.00 · 16.81 , 22.42 · 25.22]
+0.79 σ
Fair
Last 4Y 20.40 2.50 [15.40 · 17.90 , 22.90 · 25.40]
+0.57 σ
Fair
Last 5Y 20.83 2.11 [16.61 · 18.72 , 22.94 · 25.05]
+0.48 σ
Fair
Last 6Y 20.10 2.25 [15.60 · 17.85 , 22.35 · 24.60]
+0.77 σ
Fair
Last 7Y 19.19 2.87 [13.45 · 16.32 , 22.05 · 24.92]
+0.93 σ
Fair
Last 8Y 18.22 3.34 [11.53 · 14.88 , 21.56 · 24.91]
+1.08 σ
Overvalued
Last 9Y 17.57 3.46 [10.64 · 14.11 , 21.03 · 24.50]
+1.23 σ
Overvalued
Last 10Y 17.11 3.55 [10.02 · 13.56 , 20.66 · 24.21]
+1.33 σ
Overvalued
Last 11Y 16.62 3.47 [9.68 · 13.15 , 20.10 · 23.57]
+1.50 σ
Overvalued
Last 12Y 16.58 3.28 [10.02 · 13.30 , 19.86 · 23.14]
+1.60 σ
Overvalued
Last 13Y 16.63 3.09 [10.46 · 13.55 , 19.72 · 22.81]
+1.69 σ
Overvalued
Last 14Y 16.54 2.92 [10.70 · 13.62 , 19.46 · 22.38]
+1.81 σ
Overvalued
Last 15Y 16.41 2.85 [10.71 · 13.56 , 19.27 · 22.12]
+1.90 σ
Overvalued
Last 16Y 16.09 2.81 [10.46 · 13.28 , 18.91 · 21.72]
+2.04 σ
Expensive
Last 17Y 15.83 2.81 [10.20 · 13.01 , 18.64 · 21.46]
+2.14 σ
Expensive
Last 18Y 15.72 2.64 [10.44 · 13.08 , 18.37 · 21.01]
+2.31 σ
Expensive
Last 19Y 15.60 2.55 [10.50 · 13.05 , 18.15 · 20.70]
+2.45 σ
Expensive
Last 20Y 15.62 2.47 [10.68 · 13.15 , 18.09 · 20.55]
+2.52 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 +9.96% 17 Jan
Short Term Price vs SMA50 -0.54% 17 Jan
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.