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

17.72
Last update: 17 January 2025

The estimated P/E Ratio for S&P 500 Financials Sector is 17.72, calculated on 17 January 2025.

Considering the last 5 years, an average P/E interval is [13.01 , 15.63]. For this reason, the current P/E can be considered Expensive

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.

17 January 2025 · P/E Ratio: 17.72
17 January 2025 · P/E Ratio: 17.72 · 1Y Average: 17.02 · 1 Std Dev range: [16.23 , 17.81] · 2 Std Dev range: [15.44 , 18.61]
17 January 2025 · P/E Ratio: 17.72 · 5Y Average: 14.32 · 1 Std Dev range: [13.01 , 15.63] · 2 Std Dev range: [11.70 , 16.93]
17 January 2025 · P/E Ratio: 17.72 · 10Y Average: 13.54 · 1 Std Dev range: [12.54 , 14.54] · 2 Std Dev range: [11.54 , 15.54]
17 January 2025 · P/E Ratio: 17.72 · 20Y Average: 12.69 · 1 Std Dev range: [11.54 , 13.84] · 2 Std Dev range: [10.38 , 14.99]
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: 17.72 · 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
( 17.72 )		 Deviation
vs μ		 Valuation
Last 1Y 17.02 0.79 [15.44 · 16.23 , 17.81 · 18.61]
+0.89 σ
Fair
Last 2Y 15.76 1.58 [12.60 · 14.18 , 17.34 · 18.92]
+1.24 σ
Overvalued
Last 3Y 14.55 1.77 [11.02 · 12.78 , 16.31 · 18.08]
+1.80 σ
Overvalued
Last 4Y 14.48 1.37 [11.74 · 13.11 , 15.85 · 17.22]
+2.37 σ
Expensive
Last 5Y 14.32 1.31 [11.70 · 13.01 , 15.63 · 16.93]
+2.60 σ
Expensive
Last 6Y 13.75 1.45 [10.85 · 12.30 , 15.19 · 16.64]
+2.75 σ
Expensive
Last 7Y 13.57 1.37 [10.84 · 12.21 , 14.94 · 16.31]
+3.04 σ
Expensive
Last 8Y 13.55 1.18 [11.20 · 12.38 , 14.73 · 15.91]
+3.54 σ
Expensive
Last 9Y 13.47 1.09 [11.28 · 12.37 , 14.56 · 15.65]
+3.90 σ
Expensive
Last 10Y 13.54 1.00 [11.54 · 12.54 , 14.54 · 15.54]
+4.18 σ
Expensive
Last 11Y 13.49 0.88 [11.74 · 12.61 , 14.37 · 15.25]
+4.82 σ
Expensive
Last 12Y 13.37 0.89 [11.59 · 12.48 , 14.25 · 15.14]
+4.92 σ
Expensive
Last 13Y 13.16 0.99 [11.19 · 12.18 , 14.15 · 15.14]
+4.61 σ
Expensive
Last 14Y 13.00 1.07 [10.87 · 11.94 , 14.07 · 15.14]
+4.43 σ
Expensive
Last 15Y 12.99 1.11 [10.77 · 11.88 , 14.10 · 15.21]
+4.27 σ
Expensive
Last 16Y 13.03 1.16 [10.70 · 11.87 , 14.19 · 15.36]
+4.03 σ
Expensive
Last 17Y 12.90 1.20 [10.49 · 11.70 , 14.11 · 15.31]
+4.00 σ
Expensive
Last 18Y 12.80 1.20 [10.40 · 11.60 , 14.00 · 15.20]
+4.11 σ
Expensive
Last 19Y 12.73 1.17 [10.39 · 11.56 , 13.90 · 15.07]
+4.27 σ
Expensive
Last 20Y 12.69 1.15 [10.38 · 11.54 , 13.84 · 14.99]
+4.37 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 +12.48% 17 Jan
Short Term Price vs SMA50 +1.77% 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.