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

18.02
Last update: 20 November 2024

The estimated P/E Ratio for S&P 500 Financials Sector is 18.02, calculated on 20 November 2024.

Considering the last 5 years, an average P/E interval is [12.90 , 15.37]. 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.

20 November 2024 · P/E Ratio: 18.02
20 November 2024 · P/E Ratio: 18.02 · 1Y Average: 16.42 · 1 Std Dev range: [15.54 , 17.30] · 2 Std Dev range: [14.65 , 18.19]
20 November 2024 · P/E Ratio: 18.02 · 5Y Average: 14.13 · 1 Std Dev range: [12.90 , 15.37] · 2 Std Dev range: [11.66 , 16.61]
20 November 2024 · P/E Ratio: 18.02 · 10Y Average: 13.49 · 1 Std Dev range: [12.56 , 14.42] · 2 Std Dev range: [11.63 , 15.35]
20 November 2024 · P/E Ratio: 18.02 · 20Y Average: 12.65 · 1 Std Dev range: [11.52 , 13.79] · 2 Std Dev range: [10.39 , 14.92]
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".
20 November 2024 · P/E Ratio: 18.02 · 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
( 18.02 )		 Deviation
vs μ		 Valuation
Last 1Y 16.42 0.88 [14.65 · 15.54 , 17.30 · 18.19]
+1.81 σ
Overvalued
Last 2Y 15.19 1.67 [11.84 · 13.52 , 16.86 · 18.53]
+1.69 σ
Overvalued
Last 3Y 14.37 1.59 [11.18 · 12.77 , 15.96 · 17.55]
+2.29 σ
Expensive
Last 4Y 14.25 1.30 [11.65 · 12.95 , 15.55 · 16.85]
+2.89 σ
Expensive
Last 5Y 14.13 1.24 [11.66 · 12.90 , 15.37 · 16.61]
+3.14 σ
Expensive
Last 6Y 13.56 1.40 [10.76 · 12.16 , 14.96 · 16.36]
+3.18 σ
Expensive
Last 7Y 13.50 1.27 [10.96 · 12.23 , 14.78 · 16.05]
+3.55 σ
Expensive
Last 8Y 13.44 1.11 [11.23 · 12.33 , 14.55 · 15.66]
+4.13 σ
Expensive
Last 9Y 13.41 1.01 [11.38 · 12.39 , 14.42 · 15.43]
+4.55 σ
Expensive
Last 10Y 13.49 0.93 [11.63 · 12.56 , 14.42 · 15.35]
+4.88 σ
Expensive
Last 11Y 13.44 0.85 [11.74 · 12.59 , 14.29 · 15.14]
+5.39 σ
Expensive
Last 12Y 13.30 0.89 [11.53 · 12.42 , 14.19 · 15.08]
+5.31 σ
Expensive
Last 13Y 13.10 0.99 [11.11 · 12.11 , 14.10 · 15.09]
+4.94 σ
Expensive
Last 14Y 12.95 1.06 [10.83 · 11.89 , 14.01 · 15.07]
+4.79 σ
Expensive
Last 15Y 12.99 1.11 [10.77 · 11.88 , 14.10 · 15.20]
+4.54 σ
Expensive
Last 16Y 12.97 1.16 [10.65 · 11.81 , 14.13 · 15.29]
+4.34 σ
Expensive
Last 17Y 12.85 1.21 [10.44 · 11.64 , 14.05 · 15.26]
+4.29 σ
Expensive
Last 18Y 12.76 1.18 [10.41 · 11.58 , 13.94 · 15.12]
+4.46 σ
Expensive
Last 19Y 12.69 1.15 [10.39 · 11.54 , 13.85 · 15.00]
+4.61 σ
Expensive
Last 20Y 12.65 1.13 [10.39 · 11.52 , 13.79 · 14.92]
+4.74 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 +15.29% 20 Nov
Short Term Price vs SMA50 +5.83% 20 Nov
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.