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

33.06
Last update: 30 January 2025

The estimated P/E Ratio for S&P 500 Health Care Sector is 33.06, calculated on 30 January 2025.

Considering the last 5 years, an average P/E interval is [17.21 , 25.90]. For this reason, the current P/E can be considered Expensive

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.

30 January 2025 · P/E Ratio: 33.06
30 January 2025 · P/E Ratio: 33.06 · 1Y Average: 32.45 · 1 Std Dev range: [31.33 , 33.56] · 2 Std Dev range: [30.22 , 34.68]
30 January 2025 · P/E Ratio: 33.06 · 5Y Average: 21.56 · 1 Std Dev range: [17.21 , 25.90] · 2 Std Dev range: [12.86 , 30.25]
30 January 2025 · P/E Ratio: 33.06 · 10Y Average: 19.84 · 1 Std Dev range: [18.00 , 21.68] · 2 Std Dev range: [16.16 , 23.52]
30 January 2025 · P/E Ratio: 33.06 · 20Y Average: 17.40 · 1 Std Dev range: [15.01 , 19.79] · 2 Std Dev range: [12.62 , 22.18]
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".
30 January 2025 · P/E Ratio: 33.06 · 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
( 33.06 )
Deviation
vs μ
Valuation
Last 1Y 32.45 1.11 [30.22 · 31.33 , 33.56 · 34.68]
+0.55 σ
Fair
Last 2Y 27.78 4.15 [19.49 · 23.64 , 31.93 · 36.07]
+1.27 σ
Overvalued
Last 3Y 24.09 4.87 [14.36 · 19.23 , 28.96 · 33.83]
+1.84 σ
Overvalued
Last 4Y 22.31 4.57 [13.18 · 17.75 , 26.88 · 31.45]
+2.35 σ
Expensive
Last 5Y 21.56 4.35 [12.86 · 17.21 , 25.90 · 30.25]
+2.65 σ
Expensive
Last 6Y 20.70 3.49 [13.71 · 17.21 , 24.20 · 27.69]
+3.54 σ
Expensive
Last 7Y 20.29 2.95 [14.39 · 17.34 , 23.24 · 26.19]
+4.33 σ
Expensive
Last 8Y 19.86 2.18 [15.49 · 17.68 , 22.04 · 24.23]
+6.05 σ
Expensive
Last 9Y 19.64 1.88 [15.88 · 17.76 , 21.52 · 23.40]
+7.13 σ
Expensive
Last 10Y 19.84 1.84 [16.16 · 18.00 , 21.68 · 23.52]
+7.18 σ
Expensive
Last 11Y 19.65 1.50 [16.65 · 18.15 , 21.15 · 22.65]
+8.93 σ
Expensive
Last 12Y 19.42 1.44 [16.53 · 17.98 , 20.87 · 22.31]
+9.45 σ
Expensive
Last 13Y 19.13 1.38 [16.36 · 17.74 , 20.51 · 21.89]
+10.06 σ
Expensive
Last 14Y 18.71 1.78 [15.16 · 16.94 , 20.49 · 22.27]
+8.08 σ
Expensive
Last 15Y 18.32 2.24 [13.83 · 16.08 , 20.56 · 22.81]
+6.57 σ
Expensive
Last 16Y 17.81 2.62 [12.57 · 15.19 , 20.44 · 23.06]
+5.81 σ
Expensive
Last 17Y 17.49 2.77 [11.95 · 14.72 , 20.26 · 23.03]
+5.63 σ
Expensive
Last 18Y 17.38 2.64 [12.09 · 14.74 , 20.02 · 22.66]
+5.94 σ
Expensive
Last 19Y 17.34 2.52 [12.30 · 14.82 , 19.86 · 22.38]
+6.24 σ
Expensive
Last 20Y 17.40 2.39 [12.62 · 15.01 , 19.79 · 22.18]
+6.55 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 +0.32% 30 Jan
Short Term Price vs SMA50 +3.68% 30 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.