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

25.86
Last update: 21 February 2025

The estimated P/E Ratio for S&P 500 Industrials Sector is 25.86, calculated on 21 February 2025.

Considering the last 5 years, an average P/E interval is [19.43 , 24.02]. For this reason, the current P/E can be considered Overvalued

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

21 February 2025 · P/E Ratio: 25.86
21 February 2025 · P/E Ratio: 25.86 · 1Y Average: 25.73 · 1 Std Dev range: [24.97 , 26.49] · 2 Std Dev range: [24.21 , 27.25]
21 February 2025 · P/E Ratio: 25.86 · 5Y Average: 21.72 · 1 Std Dev range: [19.43 , 24.02] · 2 Std Dev range: [17.13 , 26.31]
21 February 2025 · P/E Ratio: 25.86 · 10Y Average: 18.68 · 1 Std Dev range: [15.96 , 21.40] · 2 Std Dev range: [13.24 , 24.13]
21 February 2025 · P/E Ratio: 25.86 · 20Y Average: 16.40 · 1 Std Dev range: [14.25 , 18.54] · 2 Std Dev range: [12.11 , 20.68]
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".
21 February 2025 · P/E Ratio: 25.86 · 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
( 25.86 )		 Deviation
vs μ		 Valuation
Last 1Y 25.73 0.76 [24.21 · 24.97 , 26.49 · 27.25]
+0.17 σ
Fair
Last 2Y 23.12 2.28 [18.55 · 20.84 , 25.40 · 27.68]
+1.20 σ
Overvalued
Last 3Y 21.08 2.72 [15.63 · 18.36 , 23.80 · 26.53]
+1.76 σ
Overvalued
Last 4Y 21.47 2.41 [16.64 · 19.05 , 23.88 · 26.30]
+1.82 σ
Overvalued
Last 5Y 21.72 2.30 [17.13 · 19.43 , 24.02 · 26.31]
+1.80 σ
Overvalued
Last 6Y 20.58 2.83 [14.92 · 17.75 , 23.41 · 26.25]
+1.86 σ
Overvalued
Last 7Y 19.83 2.99 [13.84 · 16.83 , 22.82 · 25.81]
+2.02 σ
Expensive
Last 8Y 19.48 2.70 [14.07 · 16.78 , 22.18 · 24.88]
+2.36 σ
Expensive
Last 9Y 19.01 2.69 [13.62 · 16.32 , 21.70 · 24.39]
+2.55 σ
Expensive
Last 10Y 18.68 2.72 [13.24 · 15.96 , 21.41 · 24.13]
+2.64 σ
Expensive
Last 11Y 18.33 2.59 [13.16 · 15.74 , 20.91 · 23.50]
+2.91 σ
Expensive
Last 12Y 17.99 2.57 [12.86 · 15.43 , 20.56 · 23.13]
+3.07 σ
Expensive
Last 13Y 17.58 2.55 [12.48 · 15.03 , 20.13 · 22.68]
+3.25 σ
Expensive
Last 14Y 17.23 2.60 [12.03 · 14.63 , 19.83 · 22.43]
+3.32 σ
Expensive
Last 15Y 17.05 2.61 [11.84 · 14.45 , 19.66 · 22.27]
+3.38 σ
Expensive
Last 16Y 16.81 2.49 [11.82 · 14.32 , 19.30 · 21.79]
+3.63 σ
Expensive
Last 17Y 16.55 2.49 [11.57 · 14.06 , 19.04 · 21.54]
+3.74 σ
Expensive
Last 18Y 16.42 2.32 [11.77 · 14.10 , 18.74 · 21.06]
+4.07 σ
Expensive
Last 19Y 16.34 2.21 [11.92 · 14.13 , 18.55 · 20.76]
+4.31 σ
Expensive
Last 20Y 16.40 2.14 [12.11 · 14.25 , 18.54 · 20.68]
+4.42 σ
Expensive

S&P 500 Industrials Sector Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +2.54% 21 Feb
Short Term Price vs SMA50 -1.09% 21 Feb
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.