S&P 500 Financials Sector: current P/E Ratio

16.64
Last update: 21 February 2025

The estimated P/E Ratio for S&P 500 Financials Sector is 16.64, calculated on 21 February 2025.

Considering the last 5 years, an average P/E interval is [13.03 , 15.79]. For this reason, the current P/E can be considered Overvalued

P/E Ratio is calculated on the XLF Etf, whose benchmark is the S&P 500 Financials 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 Financials 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: 16.64
21 February 2025 · P/E Ratio: 16.64 · 1Y Average: 17.27 · 1 Std Dev range: [16.51 , 18.03] · 2 Std Dev range: [15.75 , 18.79]
21 February 2025 · P/E Ratio: 16.64 · 5Y Average: 14.41 · 1 Std Dev range: [13.03 , 15.79] · 2 Std Dev range: [11.66 , 17.17]
21 February 2025 · P/E Ratio: 16.64 · 10Y Average: 13.57 · 1 Std Dev range: [12.53 , 14.61] · 2 Std Dev range: [11.49 , 15.65]
21 February 2025 · P/E Ratio: 16.64 · 20Y Average: 12.70 · 1 Std Dev range: [11.54 , 13.87] · 2 Std Dev range: [10.38 , 15.03]
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: 16.64 · 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
( 16.64 )		 Deviation
vs μ		 Valuation
Last 1Y 17.27 0.76 [15.75 · 16.51 , 18.03 · 18.79]
-0.83 σ
Fair
Last 2Y 16.04 1.51 [13.02 · 14.53 , 17.55 · 19.06]
+0.40 σ
Fair
Last 3Y 14.65 1.87 [10.91 · 12.78 , 16.53 · 18.40]
+1.06 σ
Overvalued
Last 4Y 14.56 1.46 [11.65 · 13.11 , 16.02 · 17.48]
+1.42 σ
Overvalued
Last 5Y 14.41 1.38 [11.66 · 13.03 , 15.79 · 17.17]
+1.62 σ
Overvalued
Last 6Y 13.84 1.47 [10.89 · 12.37 , 15.32 · 16.79]
+1.90 σ
Overvalued
Last 7Y 13.60 1.41 [10.78 · 12.19 , 15.01 · 16.42]
+2.16 σ
Expensive
Last 8Y 13.59 1.22 [11.15 · 12.37 , 14.81 · 16.04]
+2.49 σ
Expensive
Last 9Y 13.50 1.14 [11.23 · 12.36 , 14.63 · 15.77]
+2.77 σ
Expensive
Last 10Y 13.57 1.04 [11.49 · 12.53 , 14.61 · 15.65]
+2.95 σ
Expensive
Last 11Y 13.52 0.91 [11.70 · 12.61 , 14.43 · 15.34]
+3.43 σ
Expensive
Last 12Y 13.40 0.89 [11.61 · 12.51 , 14.29 · 15.19]
+3.63 σ
Expensive
Last 13Y 13.20 0.99 [11.22 · 12.21 , 14.18 · 15.17]
+3.49 σ
Expensive
Last 14Y 13.03 1.07 [10.89 · 11.96 , 14.10 · 15.17]
+3.37 σ
Expensive
Last 15Y 12.99 1.11 [10.77 · 11.88 , 14.10 · 15.21]
+3.28 σ
Expensive
Last 16Y 13.06 1.17 [10.72 · 11.89 , 14.23 · 15.40]
+3.06 σ
Expensive
Last 17Y 12.93 1.21 [10.51 · 11.72 , 14.14 · 15.35]
+3.07 σ
Expensive
Last 18Y 12.81 1.21 [10.39 · 11.60 , 14.02 · 15.24]
+3.16 σ
Expensive
Last 19Y 12.75 1.18 [10.39 · 11.57 , 13.93 · 15.11]
+3.30 σ
Expensive
Last 20Y 12.70 1.16 [10.38 · 11.54 , 13.87 · 15.03]
+3.38 σ
Expensive

S&P 500 Financials Sector Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +10.60% 21 Feb
Short Term Price vs SMA50 +1.51% 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.