S&P 500 Information Technology Sector: current P/E Ratio

37.38
Last update: 21 February 2025

The estimated P/E Ratio for S&P 500 Information Technology Sector is 37.38, calculated on 21 February 2025.

Considering the last 5 years, an average P/E interval is [25.41 , 32.29]. For this reason, the current P/E can be considered Expensive

P/E Ratio is calculated on the XLK Etf, whose benchmark is the S&P 500 Information Technology 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 Information Technology 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: 37.38
21 February 2025 · P/E Ratio: 37.38 · 1Y Average: 35.58 · 1 Std Dev range: [34.01 , 37.16] · 2 Std Dev range: [32.43 , 38.74]
21 February 2025 · P/E Ratio: 37.38 · 5Y Average: 28.85 · 1 Std Dev range: [25.41 , 32.29] · 2 Std Dev range: [21.97 , 35.73]
21 February 2025 · P/E Ratio: 37.38 · 10Y Average: 22.59 · 1 Std Dev range: [17.24 , 27.94] · 2 Std Dev range: [11.89 , 33.30]
21 February 2025 · P/E Ratio: 37.38 · 20Y Average: 18.33 · 1 Std Dev range: [14.01 , 22.64] · 2 Std Dev range: [9.70 , 26.96]
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: 37.38 · 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
( 37.38 )		 Deviation
vs μ		 Valuation
Last 1Y 35.58 1.58 [32.43 · 34.01 , 37.16 · 38.74]
+1.13 σ
Overvalued
Last 2Y 33.21 2.54 [28.12 · 30.67 , 35.75 · 38.30]
+1.64 σ
Overvalued
Last 3Y 30.50 3.62 [23.27 · 26.88 , 34.11 · 37.73]
+1.90 σ
Overvalued
Last 4Y 29.66 3.35 [22.96 · 26.31 , 33.01 · 36.36]
+2.30 σ
Expensive
Last 5Y 28.85 3.44 [21.97 · 25.41 , 32.29 · 35.73]
+2.48 σ
Expensive
Last 6Y 27.20 4.01 [19.18 · 23.19 , 31.20 · 35.21]
+2.54 σ
Expensive
Last 7Y 25.65 4.82 [16.01 · 20.83 , 30.47 · 35.29]
+2.43 σ
Expensive
Last 8Y 24.39 4.97 [14.46 · 19.42 , 29.36 · 34.32]
+2.62 σ
Expensive
Last 9Y 23.33 5.17 [12.98 · 18.15 , 28.50 · 33.68]
+2.72 σ
Expensive
Last 10Y 22.59 5.35 [11.89 · 17.24 , 27.94 · 33.30]
+2.76 σ
Expensive
Last 11Y 21.66 5.30 [11.06 · 16.36 , 26.96 · 32.26]
+2.97 σ
Expensive
Last 12Y 20.91 5.33 [10.25 · 15.58 , 26.25 · 31.58]
+3.09 σ
Expensive
Last 13Y 20.07 5.33 [9.42 · 14.74 , 25.39 · 30.72]
+3.25 σ
Expensive
Last 14Y 19.35 5.43 [8.49 · 13.92 , 24.78 · 30.22]
+3.32 σ
Expensive
Last 15Y 18.96 5.44 [8.09 · 13.52 , 24.39 · 29.83]
+3.39 σ
Expensive
Last 16Y 18.57 5.14 [8.29 · 13.43 , 23.71 · 28.84]
+3.66 σ
Expensive
Last 17Y 18.22 5.00 [8.22 · 13.22 , 23.22 · 28.22]
+3.83 σ
Expensive
Last 18Y 18.16 4.68 [8.80 · 13.48 , 22.84 · 27.52]
+4.10 σ
Expensive
Last 19Y 18.17 4.46 [9.25 · 13.71 , 22.63 · 27.09]
+4.31 σ
Expensive
Last 20Y 18.33 4.32 [9.70 · 14.01 , 22.64 · 26.96]
+4.41 σ
Expensive

S&P 500 Information Technology Sector Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +4.04% 21 Feb
Short Term Price vs SMA50 -0.27% 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.