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

34.70
Last update: 26 July 2024

The estimated P/E Ratio for S&P 500 Health Care Sector is 34.70, calculated on 26 July 2024.

Considering the last 5 years, an average P/E interval is [17.67 , 22.47]. 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.

26 July 2024 · P/E Ratio: 34.70
26 July 2024 · P/E Ratio: 34.70 · 1Y Average: 27.72 · 1 Std Dev range: [24.95 , 30.49] · 2 Std Dev range: [22.18 , 33.26]
26 July 2024 · P/E Ratio: 34.70 · 5Y Average: 20.07 · 1 Std Dev range: [17.67 , 22.47] · 2 Std Dev range: [15.26 , 24.87]
26 July 2024 · P/E Ratio: 34.70 · 10Y Average: 19.50 · 1 Std Dev range: [18.35 , 20.65] · 2 Std Dev range: [17.19 , 21.81]
26 July 2024 · P/E Ratio: 34.70 · 20Y Average: 17.27 · 1 Std Dev range: [14.99 , 19.54] · 2 Std Dev range: [12.71 , 21.82]
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: 34.70 · 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
( 34.70 )		 Deviation
vs μ		 Valuation
Last 1Y 27.72 2.77 [22.18 · 24.95 , 30.49 · 33.26]
+2.52 σ
Expensive
Last 2Y 23.48 3.89 [15.69 · 19.59 , 27.37 · 31.26]
+2.88 σ
Expensive
Last 3Y 21.42 2.88 [15.67 · 18.55 , 24.30 · 27.17]
+4.62 σ
Expensive
Last 4Y 20.25 2.65 [14.95 · 17.60 , 22.90 · 25.54]
+5.46 σ
Expensive
Last 5Y 20.07 2.40 [15.26 · 17.67 , 22.47 · 24.87]
+6.09 σ
Expensive
Last 6Y 19.65 1.81 [16.03 · 17.84 , 21.45 · 23.26]
+8.33 σ
Expensive
Last 7Y 19.52 1.53 [16.46 · 17.99 , 21.06 · 22.59]
+9.91 σ
Expensive
Last 8Y 19.30 1.20 [16.91 · 18.11 , 20.50 · 21.69]
+12.88 σ
Expensive
Last 9Y 19.29 1.07 [17.16 · 18.22 , 20.36 · 21.42]
+14.45 σ
Expensive
Last 10Y 19.50 1.15 [17.19 · 18.35 , 20.65 · 21.81]
+13.17 σ
Expensive
Last 11Y 19.29 1.05 [17.19 · 18.24 , 20.34 · 21.39]
+14.67 σ
Expensive
Last 12Y 19.08 1.12 [16.85 · 17.97 , 20.20 · 21.32]
+13.98 σ
Expensive
Last 13Y 18.75 1.38 [15.99 · 17.37 , 20.14 · 21.52]
+11.53 σ
Expensive
Last 14Y 18.31 1.93 [14.44 · 16.38 , 20.24 · 22.17]
+8.49 σ
Expensive
Last 15Y 17.90 2.37 [13.16 · 15.53 , 20.28 · 22.65]
+7.08 σ
Expensive
Last 16Y 17.43 2.71 [12.00 · 14.72 , 20.15 · 22.86]
+6.36 σ
Expensive
Last 17Y 17.27 2.66 [11.95 · 14.61 , 19.93 · 22.58]
+6.56 σ
Expensive
Last 18Y 17.20 2.52 [12.16 · 14.68 , 19.72 · 22.24]
+6.94 σ
Expensive
Last 19Y 17.21 2.40 [12.40 · 14.81 , 19.61 · 22.02]
+7.28 σ
Expensive
Last 20Y 17.27 2.28 [12.71 · 14.99 , 19.54 · 21.82]
+7.66 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 +7.08% 26 Jul
Short Term Price vs SMA50 +2.58% 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.