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

20.95
Last update: 21 February 2025

The estimated P/E Ratio for S&P 500 Communication Services Sector is 20.95, calculated on 21 February 2025.

Considering the last 5 years, an average P/E interval is [18.80 , 23.02]. 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.

21 February 2025 · P/E Ratio: 20.95
21 February 2025 · P/E Ratio: 20.95 · 1Y Average: 21.38 · 1 Std Dev range: [20.51 , 22.25] · 2 Std Dev range: [19.64 , 23.12]
21 February 2025 · P/E Ratio: 20.95 · 5Y Average: 20.91 · 1 Std Dev range: [18.80 , 23.02] · 2 Std Dev range: [16.69 , 25.14]
21 February 2025 · P/E Ratio: 20.95 · 10Y Average: 17.21 · 1 Std Dev range: [13.64 , 20.79] · 2 Std Dev range: [10.06 , 24.36]
21 February 2025 · P/E Ratio: 20.95 · 20Y Average: 15.65 · 1 Std Dev range: [13.14 , 18.16] · 2 Std Dev range: [10.63 , 20.67]
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".
21 February 2025 · P/E Ratio: 20.95 · 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
( 20.95 )		 Deviation
vs μ		 Valuation
Last 1Y 21.38 0.87 [19.64 · 20.51 , 22.25 · 23.12]
-0.49 σ
Fair
Last 2Y 22.02 1.40 [19.21 · 20.62 , 23.42 · 24.83]
-0.76 σ
Fair
Last 3Y 19.69 2.87 [13.96 · 16.82 , 22.55 · 25.42]
+0.44 σ
Fair
Last 4Y 20.40 2.50 [15.41 · 17.90 , 22.90 · 25.39]
+0.22 σ
Fair
Last 5Y 20.91 2.11 [16.69 · 18.80 , 23.02 · 25.14]
+0.02 σ
Fair
Last 6Y 20.23 2.20 [15.82 · 18.02 , 22.43 · 24.63]
+0.33 σ
Fair
Last 7Y 19.34 2.79 [13.75 · 16.54 , 22.13 · 24.92]
+0.58 σ
Fair
Last 8Y 18.33 3.35 [11.62 · 14.98 , 21.69 · 25.04]
+0.78 σ
Fair
Last 9Y 17.70 3.46 [10.78 · 14.24 , 21.15 · 24.61]
+0.94 σ
Fair
Last 10Y 17.21 3.58 [10.06 · 13.64 , 20.79 · 24.36]
+1.04 σ
Overvalued
Last 11Y 16.71 3.51 [9.68 · 13.19 , 20.22 · 23.73]
+1.21 σ
Overvalued
Last 12Y 16.62 3.33 [9.97 · 13.30 , 19.95 · 23.28]
+1.30 σ
Overvalued
Last 13Y 16.69 3.13 [10.43 · 13.56 , 19.82 · 22.95]
+1.36 σ
Overvalued
Last 14Y 16.59 2.96 [10.66 · 13.63 , 19.56 · 22.52]
+1.47 σ
Overvalued
Last 15Y 16.47 2.89 [10.69 · 13.58 , 19.36 · 22.25]
+1.55 σ
Overvalued
Last 16Y 16.16 2.84 [10.47 · 13.31 , 19.00 · 21.85]
+1.68 σ
Overvalued
Last 17Y 15.87 2.86 [10.16 · 13.02 , 18.73 · 21.59]
+1.77 σ
Overvalued
Last 18Y 15.77 2.69 [10.39 · 13.08 , 18.46 · 21.15]
+1.93 σ
Overvalued
Last 19Y 15.64 2.59 [10.46 · 13.05 , 18.23 · 20.83]
+2.05 σ
Expensive
Last 20Y 15.65 2.51 [10.63 · 13.14 , 18.16 · 20.67]
+2.11 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 +13.09% 21 Feb
Short Term Price vs SMA50 +2.76% 21 Feb
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.