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

20.32
Last update: 22 April 2024

The estimated P/E Ratio for S&P 500 Communication Services Sector is 20.32, calculated on 22 April 2024.

Considering the last 5 years, an average P/E interval is [17.77 , 22.59]. 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.

22 April 2024 · P/E Ratio: 20.32
22 April 2024 · P/E Ratio: 20.32 · 1Y Average: 23.43 · 1 Std Dev range: [22.33 , 24.53] · 2 Std Dev range: [21.22 , 25.64]
22 April 2024 · P/E Ratio: 20.32 · 5Y Average: 20.18 · 1 Std Dev range: [17.77 , 22.59] · 2 Std Dev range: [15.36 , 25.00]
22 April 2024 · P/E Ratio: 20.32 · 10Y Average: 16.38 · 1 Std Dev range: [12.94 , 19.83] · 2 Std Dev range: [9.49 , 23.27]
22 April 2024 · P/E Ratio: 20.32 · 20Y Average: 15.50 · 1 Std Dev range: [13.24 , 17.76] · 2 Std Dev range: [10.98 , 20.02]
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".
22 April 2024 · P/E Ratio: 20.32 · 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
( 20.32 )
Deviation
vs μ
Valuation
Last 1Y 23.43 1.10 [21.22 · 22.33 , 24.53 · 25.64]
-2.82 σ
Cheap
Last 2Y 19.29 3.69 [11.91 · 15.60 , 22.98 · 26.66]
+0.28 σ
Fair
Last 3Y 19.82 2.92 [13.99 · 16.91 , 22.74 · 25.66]
+0.17 σ
Fair
Last 4Y 20.57 2.64 [15.29 · 17.93 , 23.21 · 25.86]
-0.10 σ
Fair
Last 5Y 20.18 2.41 [15.36 · 17.77 , 22.59 · 25.00]
+0.06 σ
Fair
Last 6Y 19.17 2.81 [13.54 · 16.35 , 21.98 · 24.80]
+0.41 σ
Fair
Last 7Y 18.06 3.47 [11.13 · 14.60 , 21.53 · 25.00]
+0.65 σ
Fair
Last 8Y 17.34 3.44 [10.45 · 13.90 , 20.78 · 24.22]
+0.87 σ
Fair
Last 9Y 16.70 3.51 [9.67 · 13.18 , 20.21 · 23.72]
+1.03 σ
Overvalued
Last 10Y 16.38 3.44 [9.49 · 12.94 , 19.83 · 23.27]
+1.14 σ
Overvalued
Last 11Y 16.19 3.22 [9.75 · 12.97 , 19.40 · 22.62]
+1.28 σ
Overvalued
Last 12Y 16.36 3.06 [10.24 · 13.30 , 19.42 · 22.48]
+1.29 σ
Overvalued
Last 13Y 16.24 2.82 [10.60 · 13.42 , 19.07 · 21.89]
+1.44 σ
Overvalued
Last 14Y 16.09 2.69 [10.72 · 13.40 , 18.78 · 21.47]
+1.57 σ
Overvalued
Last 15Y 15.92 2.68 [10.56 · 13.24 , 18.59 · 21.27]
+1.64 σ
Overvalued
Last 16Y 15.59 2.63 [10.33 · 12.96 , 18.22 · 20.85]
+1.80 σ
Overvalued
Last 17Y 15.50 2.51 [10.48 · 12.99 , 18.01 · 20.52]
+1.92 σ
Overvalued
Last 18Y 15.36 2.35 [10.65 · 13.00 , 17.71 · 20.06]
+2.11 σ
Expensive
Last 19Y 15.30 2.23 [10.83 · 13.07 , 17.54 · 19.77]
+2.24 σ
Expensive
Last 20Y 15.50 2.26 [10.98 · 13.24 , 17.76 · 20.02]
+2.13 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 +10.57% 22 Apr
Short Term Price vs SMA50 -0.97% 22 Apr
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.