The estimated P/E Ratio for S&P 500 Communication Services Sector is 19.42, calculated on 26 July 2024.
Considering the last 5 years, an average P/E interval is [18.06 , 22.66]. 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.
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".
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 ( 19.42 ) |
Deviation vs μ |
Valuation |
Last 1Y | 22.31 | 1.55 | [19.21 · 20.76 , 23.86 · 25.41] |
|
-1.87 σ |
Undervalued
|
Last 2Y | 19.92 | 3.43 | [13.07 · 16.49 , 23.34 · 26.77] |
|
-0.15 σ |
Fair
|
Last 3Y | 19.61 | 2.79 | [14.03 · 16.82 , 22.41 · 25.20] |
|
-0.07 σ |
Fair
|
Last 4Y | 20.60 | 2.61 | [15.37 · 17.99 , 23.22 · 25.83] |
|
-0.45 σ |
Fair
|
Last 5Y | 20.36 | 2.30 | [15.76 · 18.06 , 22.66 · 24.97] |
|
-0.41 σ |
Fair
|
Last 6Y | 19.50 | 2.56 | [14.39 · 16.94 , 22.05 · 24.61] |
|
-0.03 σ |
Fair
|
Last 7Y | 18.38 | 3.34 | [11.70 · 15.04 , 21.72 · 25.06] |
|
+0.31 σ |
Fair
|
Last 8Y | 17.60 | 3.41 | [10.79 · 14.20 , 21.01 · 24.41] |
|
+0.53 σ |
Fair
|
Last 9Y | 16.93 | 3.53 | [9.87 · 13.40 , 20.46 · 23.99] |
|
+0.71 σ |
Fair
|
Last 10Y | 16.61 | 3.46 | [9.69 · 13.15 , 20.07 · 23.53] |
|
+0.81 σ |
Fair
|
Last 11Y | 16.25 | 3.28 | [9.70 · 12.97 , 19.52 · 22.80] |
|
+0.97 σ |
Fair
|
Last 12Y | 16.43 | 3.12 | [10.19 · 13.31 , 19.55 · 22.67] |
|
+0.96 σ |
Fair
|
Last 13Y | 16.34 | 2.89 | [10.55 · 13.45 , 19.23 · 22.13] |
|
+1.06 σ |
Overvalued
|
Last 14Y | 16.23 | 2.74 | [10.74 · 13.49 , 18.98 · 21.72] |
|
+1.16 σ |
Overvalued
|
Last 15Y | 16.07 | 2.71 | [10.64 · 13.36 , 18.79 · 21.50] |
|
+1.23 σ |
Overvalued
|
Last 16Y | 15.73 | 2.69 | [10.35 · 13.04 , 18.42 · 21.11] |
|
+1.37 σ |
Overvalued
|
Last 17Y | 15.59 | 2.59 | [10.40 · 12.99 , 18.18 · 20.78] |
|
+1.48 σ |
Overvalued
|
Last 18Y | 15.47 | 2.43 | [10.61 · 13.04 , 17.90 · 20.33] |
|
+1.62 σ |
Overvalued
|
Last 19Y | 15.38 | 2.33 | [10.73 · 13.06 , 17.71 · 20.03] |
|
+1.74 σ |
Overvalued
|
Last 20Y | 15.53 | 2.31 | [10.91 · 13.22 , 17.85 · 20.16] |
|
+1.68 σ |
Overvalued
|
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).
Trend | Indicator | Valuation | Margin | |
---|---|---|---|---|
Long Term | Price vs SMA200 | +7.93% | 26 Jul | |
Short Term | Price vs SMA50 | -1.12% | 26 Jul |