S&P 500 Health Care Sector: current P/E Ratio

29.63
Last update: 07 April 2025

The estimated P/E Ratio for S&P 500 Health Care Sector is 29.63, calculated on 07 April 2025.

Considering the last 5 years, an average P/E interval is [17.37 , 27.23]. For this reason, the current P/E can be considered Overvalued

P/E Ratio is calculated on the XLV Etf, whose benchmark is the S&P 500 Health Care 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 Health Care Sector P/E Ratio has changed over time. Furthermore, for some trailing timeframes, you can view the average P/E and standard deviation.

07 April 2025 · P/E Ratio: 29.63
07 April 2025 · P/E Ratio: 29.63 · 1Y Average: 32.87 · 1 Std Dev range: [32.23 , 33.50] · 2 Std Dev range: [31.59 , 34.14]
07 April 2025 · P/E Ratio: 29.63 · 5Y Average: 22.30 · 1 Std Dev range: [17.37 , 27.23] · 2 Std Dev range: [12.44 , 32.16]
07 April 2025 · P/E Ratio: 29.63 · 10Y Average: 20.09 · 1 Std Dev range: [17.63 , 22.55] · 2 Std Dev range: [15.17 , 25.01]
07 April 2025 · P/E Ratio: 29.63 · 20Y Average: 17.48 · 1 Std Dev range: [15.03 , 19.93] · 2 Std Dev range: [12.57 , 22.38]
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".

Trailing P/E Ratio Stats

The following table provides a comprehensive analysis of the Price-to-Earnings (P/E) ratio over different trailing time periods. It includes key statistical measures such as the average P/E ratio, variance, and an evaluation of the current price relative to historical trends.

The data allows to assess market valuation over various time horizons, helping to identify potential overvaluation or undervaluation trends. The time intervals range from short-term (1 year) to long-term (20 years when available), offering a broad perspective on market conditions.

07 April 2025 · P/E Ratio: 29.63 · 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
( 29.63 )		 Deviation
vs μ		 Valuation
Last 1Y 32.87 0.64 [31.59 · 32.23 , 33.50 · 34.14]
-5.07 σ
Cheap
Last 2Y 29.27 3.55 [22.17 · 25.72 , 32.82 · 36.37]
+0.10 σ
Fair
Last 3Y 25.37 5.12 [15.12 · 20.24 , 30.49 · 35.62]
+0.83 σ
Fair
Last 4Y 23.39 4.99 [13.41 · 18.40 , 28.39 · 33.38]
+1.25 σ
Overvalued
Last 5Y 22.30 4.93 [12.44 · 17.37 , 27.23 · 32.16]
+1.49 σ
Overvalued
Last 6Y 21.36 4.20 [12.97 · 17.16 , 25.56 · 29.76]
+1.97 σ
Overvalued
Last 7Y 20.81 3.72 [13.37 · 17.09 , 24.53 · 28.25]
+2.37 σ
Expensive
Last 8Y 20.32 2.97 [14.38 · 17.35 , 23.29 · 26.26]
+3.13 σ
Expensive
Last 9Y 20.02 2.56 [14.90 · 17.46 , 22.59 · 25.15]
+3.75 σ
Expensive
Last 10Y 20.09 2.46 [15.17 · 17.63 , 22.55 · 25.01]
+3.88 σ
Expensive
Last 11Y 19.89 1.95 [15.98 · 17.94 , 21.85 · 23.80]
+4.98 σ
Expensive
Last 12Y 19.65 1.78 [16.08 · 17.87 , 21.43 · 23.21]
+5.60 σ
Expensive
Last 13Y 19.32 1.59 [16.14 · 17.73 , 20.91 · 22.50]
+6.49 σ
Expensive
Last 14Y 18.95 1.81 [15.32 · 17.14 , 20.77 · 22.58]
+5.88 σ
Expensive
Last 15Y 18.56 2.26 [14.05 · 16.30 , 20.82 · 23.08]
+4.90 σ
Expensive
Last 16Y 18.04 2.60 [12.83 · 15.44 , 20.65 · 23.25]
+4.45 σ
Expensive
Last 17Y 17.63 2.84 [11.96 · 14.80 , 20.47 · 23.31]
+4.23 σ
Expensive
Last 18Y 17.47 2.71 [12.06 · 14.77 , 20.18 · 22.88]
+4.49 σ
Expensive
Last 19Y 17.41 2.59 [12.24 · 14.83 , 20.00 · 22.58]
+4.73 σ
Expensive
Last 20Y 17.48 2.45 [12.57 · 15.03 , 19.93 · 22.38]
+4.96 σ
Expensive

S&P 500 Health Care Sector Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 -8.86% 07 Apr
Short Term Price vs SMA50 -7.96% 07 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.