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

16.91
Last update: 22 April 2024

The estimated P/E Ratio for S&P 500 Financials Sector is 16.91, calculated on 22 April 2024.

Considering the last 5 years, an average P/E interval is [12.36 , 14.59]. 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.

22 April 2024 · P/E Ratio: 16.91
22 April 2024 · P/E Ratio: 16.91 · 1Y Average: 15.06 · 1 Std Dev range: [13.87 , 16.26] · 2 Std Dev range: [12.67 , 17.45]
22 April 2024 · P/E Ratio: 16.91 · 5Y Average: 13.47 · 1 Std Dev range: [12.36 , 14.59] · 2 Std Dev range: [11.25 , 15.70]
22 April 2024 · P/E Ratio: 16.91 · 10Y Average: 13.38 · 1 Std Dev range: [12.56 , 14.19] · 2 Std Dev range: [11.75 , 15.01]
22 April 2024 · P/E Ratio: 16.91 · 20Y Average: 12.55 · 1 Std Dev range: [11.50 , 13.61] · 2 Std Dev range: [10.44 , 14.66]
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: 16.91 · 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
( 16.91 )
Deviation
vs μ
Valuation
Last 1Y 15.06 1.20 [12.67 · 13.87 , 16.26 · 17.45]
+1.54 σ
Overvalued
Last 2Y 13.55 1.48 [10.60 · 12.07 , 15.03 · 16.51]
+2.27 σ
Expensive
Last 3Y 13.82 1.06 [11.70 · 12.76 , 14.89 · 15.95]
+2.90 σ
Expensive
Last 4Y 13.82 0.93 [11.96 · 12.89 , 14.76 · 15.69]
+3.30 σ
Expensive
Last 5Y 13.47 1.11 [11.25 · 12.36 , 14.59 · 15.70]
+3.09 σ
Expensive
Last 6Y 13.17 1.12 [10.93 · 12.05 , 14.30 · 15.42]
+3.33 σ
Expensive
Last 7Y 13.29 1.04 [11.21 · 12.25 , 14.33 · 15.37]
+3.48 σ
Expensive
Last 8Y 13.27 0.96 [11.35 · 12.31 , 14.22 · 15.18]
+3.80 σ
Expensive
Last 9Y 13.30 0.90 [11.50 · 12.40 , 14.19 · 15.09]
+4.03 σ
Expensive
Last 10Y 13.38 0.82 [11.75 · 12.56 , 14.19 · 15.01]
+4.33 σ
Expensive
Last 11Y 13.27 0.78 [11.71 · 12.49 , 14.05 · 14.83]
+4.66 σ
Expensive
Last 12Y 13.09 0.89 [11.31 · 12.20 , 13.99 · 14.88]
+4.27 σ
Expensive
Last 13Y 12.89 1.00 [10.90 · 11.90 , 13.89 · 14.89]
+4.02 σ
Expensive
Last 14Y 12.80 1.03 [10.75 · 11.77 , 13.83 · 14.85]
+4.00 σ
Expensive
Last 15Y 12.96 1.08 [10.80 · 11.88 , 14.04 · 15.12]
+3.65 σ
Expensive
Last 16Y 12.82 1.12 [10.58 · 11.70 , 13.94 · 15.06]
+3.64 σ
Expensive
Last 17Y 12.70 1.16 [10.38 · 11.54 , 13.86 · 15.02]
+3.63 σ
Expensive
Last 18Y 12.63 1.11 [10.41 · 11.52 , 13.75 · 14.86]
+3.84 σ
Expensive
Last 19Y 12.57 1.09 [10.39 · 11.48 , 13.66 · 14.75]
+3.98 σ
Expensive
Last 20Y 12.55 1.06 [10.44 · 11.50 , 13.61 · 14.66]
+4.12 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 +11.79% 22 Apr
Short Term Price vs SMA50 +0.67% 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.