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

37.68
Last update: 17 January 2025

The estimated P/E Ratio for S&P 500 Information Technology Sector is 37.68, calculated on 17 January 2025.

Considering the last 5 years, an average P/E interval is [25.23 , 31.92]. 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.

17 January 2025 · P/E Ratio: 37.68
17 January 2025 · P/E Ratio: 37.68 · 1Y Average: 35.24 · 1 Std Dev range: [33.70 , 36.78] · 2 Std Dev range: [32.16 , 38.32]
17 January 2025 · P/E Ratio: 37.68 · 5Y Average: 28.57 · 1 Std Dev range: [25.23 , 31.92] · 2 Std Dev range: [21.88 , 35.27]
17 January 2025 · P/E Ratio: 37.68 · 10Y Average: 22.41 · 1 Std Dev range: [17.14 , 27.68] · 2 Std Dev range: [11.86 , 32.95]
17 January 2025 · P/E Ratio: 37.68 · 20Y Average: 18.29 · 1 Std Dev range: [14.04 , 22.54] · 2 Std Dev range: [9.79 , 26.79]
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".
17 January 2025 · P/E Ratio: 37.68 · 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
( 37.68 )		 Deviation
vs μ		 Valuation
Last 1Y 35.24 1.54 [32.16 · 33.70 , 36.78 · 38.32]
+1.58 σ
Overvalued
Last 2Y 32.76 2.56 [27.63 · 30.19 , 35.32 · 37.89]
+1.92 σ
Overvalued
Last 3Y 30.31 3.43 [23.46 · 26.88 , 33.74 · 37.16]
+2.15 σ
Expensive
Last 4Y 29.41 3.18 [23.04 · 26.23 , 32.59 · 35.78]
+2.60 σ
Expensive
Last 5Y 28.57 3.35 [21.88 · 25.23 , 31.92 · 35.27]
+2.72 σ
Expensive
Last 6Y 26.94 4.03 [18.88 · 22.91 , 30.97 · 35.00]
+2.67 σ
Expensive
Last 7Y 25.43 4.77 [15.90 · 20.67 , 30.20 · 34.97]
+2.57 σ
Expensive
Last 8Y 24.18 4.91 [14.36 · 19.27 , 29.08 · 33.99]
+2.75 σ
Expensive
Last 9Y 23.13 5.10 [12.93 · 18.03 , 28.23 · 33.33]
+2.85 σ
Expensive
Last 10Y 22.41 5.27 [11.86 · 17.14 , 27.68 · 32.95]
+2.90 σ
Expensive
Last 11Y 21.50 5.22 [11.06 · 16.28 , 26.71 · 31.93]
+3.10 σ
Expensive
Last 12Y 20.75 5.25 [10.25 · 15.50 , 26.01 · 31.26]
+3.22 σ
Expensive
Last 13Y 19.91 5.26 [9.39 · 14.65 , 25.17 · 30.43]
+3.38 σ
Expensive
Last 14Y 19.22 5.35 [8.51 · 13.86 , 24.57 · 29.93]
+3.45 σ
Expensive
Last 15Y 18.85 5.34 [8.16 · 13.50 , 24.19 · 29.54]
+3.52 σ
Expensive
Last 16Y 18.44 5.06 [8.32 · 13.38 , 23.51 · 28.57]
+3.80 σ
Expensive
Last 17Y 18.13 4.91 [8.31 · 13.22 , 23.04 · 27.95]
+3.98 σ
Expensive
Last 18Y 18.10 4.60 [8.90 · 13.50 , 22.70 · 27.30]
+4.25 σ
Expensive
Last 19Y 18.12 4.39 [9.35 · 13.73 , 22.51 · 26.89]
+4.46 σ
Expensive
Last 20Y 18.29 4.25 [9.79 · 14.04 , 22.54 · 26.79]
+4.56 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 +5.58% 17 Jan
Short Term Price vs SMA50 -0.34% 17 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.