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

16.85
Last update: 26 July 2024

The estimated P/E Ratio for S&P 500 Financials Sector is 16.85, calculated on 26 July 2024.

Considering the last 5 years, an average P/E interval is [12.59 , 14.90]. 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.

26 July 2024 · P/E Ratio: 16.85
26 July 2024 · P/E Ratio: 16.85 · 1Y Average: 15.44 · 1 Std Dev range: [14.12 , 16.75] · 2 Std Dev range: [12.80 , 18.07]
26 July 2024 · P/E Ratio: 16.85 · 5Y Average: 13.74 · 1 Std Dev range: [12.59 , 14.90] · 2 Std Dev range: [11.44 , 16.05]
26 July 2024 · P/E Ratio: 16.85 · 10Y Average: 13.42 · 1 Std Dev range: [12.56 , 14.28] · 2 Std Dev range: [11.70 , 15.14]
26 July 2024 · P/E Ratio: 16.85 · 20Y Average: 12.59 · 1 Std Dev range: [11.50 , 13.68] · 2 Std Dev range: [10.40 , 14.77]
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".
26 July 2024 · P/E Ratio: 16.85 · 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
( 16.85 )		 Deviation
vs μ		 Valuation
Last 1Y 15.44 1.32 [12.80 · 14.12 , 16.75 · 18.07]
+1.07 σ
Overvalued
Last 2Y 14.09 1.73 [10.63 · 12.36 , 15.83 · 17.56]
+1.59 σ
Overvalued
Last 3Y 14.00 1.28 [11.44 · 12.72 , 15.28 · 16.56]
+2.23 σ
Expensive
Last 4Y 13.98 1.07 [11.85 · 12.92 , 15.05 · 16.11]
+2.69 σ
Expensive
Last 5Y 13.74 1.15 [11.44 · 12.59 , 14.90 · 16.05]
+2.70 σ
Expensive
Last 6Y 13.29 1.21 [10.87 · 12.08 , 14.50 · 15.71]
+2.94 σ
Expensive
Last 7Y 13.35 1.10 [11.15 · 12.25 , 14.46 · 15.56]
+3.17 σ
Expensive
Last 8Y 13.33 1.01 [11.31 · 12.32 , 14.34 · 15.36]
+3.47 σ
Expensive
Last 9Y 13.33 0.94 [11.45 · 12.39 , 14.27 · 15.21]
+3.74 σ
Expensive
Last 10Y 13.42 0.86 [11.70 · 12.56 , 14.28 · 15.14]
+3.99 σ
Expensive
Last 11Y 13.35 0.80 [11.75 · 12.55 , 14.15 · 14.95]
+4.36 σ
Expensive
Last 12Y 13.18 0.89 [11.39 · 12.29 , 14.08 · 14.97]
+4.10 σ
Expensive
Last 13Y 12.98 1.01 [10.96 · 11.97 , 13.98 · 14.99]
+3.84 σ
Expensive
Last 14Y 12.83 1.05 [10.73 · 11.78 , 13.89 · 14.94]
+3.81 σ
Expensive
Last 15Y 12.98 1.09 [10.79 · 11.89 , 14.07 · 15.16]
+3.55 σ
Expensive
Last 16Y 12.89 1.14 [10.61 · 11.75 , 14.03 · 15.17]
+3.47 σ
Expensive
Last 17Y 12.75 1.19 [10.37 · 11.56 , 13.94 · 15.13]
+3.44 σ
Expensive
Last 18Y 12.69 1.15 [10.39 · 11.54 , 13.83 · 14.98]
+3.64 σ
Expensive
Last 19Y 12.62 1.12 [10.38 · 11.50 , 13.74 · 14.86]
+3.78 σ
Expensive
Last 20Y 12.59 1.09 [10.40 · 11.50 , 13.68 · 14.77]
+3.90 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 +11.42% 26 Jul
Short Term Price vs SMA50 +3.86% 26 Jul
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.