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

33.43
Last update: 24 May 2024

The estimated P/E Ratio for S&P 500 Information Technology Sector is 33.43, calculated on 24 May 2024.

Considering the last 5 years, an average P/E interval is [23.34 , 29.79]. 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.

24 May 2024 · P/E Ratio: 33.43
24 May 2024 · P/E Ratio: 33.43 · 1Y Average: 32.26 · 1 Std Dev range: [30.66 , 33.86] · 2 Std Dev range: [29.06 , 35.46]
24 May 2024 · P/E Ratio: 33.43 · 5Y Average: 26.56 · 1 Std Dev range: [23.34 , 29.79] · 2 Std Dev range: [20.11 , 33.02]
24 May 2024 · P/E Ratio: 33.43 · 10Y Average: 21.04 · 1 Std Dev range: [16.37 , 25.71] · 2 Std Dev range: [11.70 , 30.38]
24 May 2024 · P/E Ratio: 33.43 · 20Y Average: 17.99 · 1 Std Dev range: [14.26 , 21.72] · 2 Std Dev range: [10.53 , 25.45]
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".
24 May 2024 · P/E Ratio: 33.43 · Last Periods metrics
Show all periods
Swipe left to see all data
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
( 33.43 )
Deviation
vs μ
Valuation
Last 1Y 32.26 1.60 [29.06 · 30.66 , 33.86 · 35.46]
+0.73 σ
Fair
Last 2Y 28.71 3.39 [21.94 · 25.33 , 32.10 · 35.48]
+1.39 σ
Overvalued
Last 3Y 28.59 2.67 [23.26 · 25.93 , 31.26 · 33.93]
+1.82 σ
Overvalued
Last 4Y 27.75 2.48 [22.79 · 25.27 , 30.23 · 32.71]
+2.29 σ
Expensive
Last 5Y 26.56 3.23 [20.11 · 23.34 , 29.79 · 33.02]
+2.13 σ
Expensive
Last 6Y 24.82 4.09 [16.64 · 20.73 , 28.90 · 32.99]
+2.11 σ
Expensive
Last 7Y 23.69 4.31 [15.08 · 19.39 , 28.00 · 32.31]
+2.26 σ
Expensive
Last 8Y 22.55 4.45 [13.66 · 18.10 , 26.99 · 31.44]
+2.45 σ
Expensive
Last 9Y 21.66 4.55 [12.55 · 17.10 , 26.21 · 30.76]
+2.59 σ
Expensive
Last 10Y 21.04 4.67 [11.70 · 16.37 , 25.71 · 30.38]
+2.65 σ
Expensive
Last 11Y 20.24 4.63 [10.97 · 15.61 , 24.87 · 29.50]
+2.85 σ
Expensive
Last 12Y 19.54 4.73 [10.07 · 14.81 , 24.27 · 29.00]
+2.94 σ
Expensive
Last 13Y 18.75 4.82 [9.10 · 13.92 , 23.57 · 28.39]
+3.05 σ
Expensive
Last 14Y 18.21 4.80 [8.61 · 13.41 , 23.01 · 27.81]
+3.17 σ
Expensive
Last 15Y 18.07 4.64 [8.78 · 13.42 , 22.71 · 27.35]
+3.31 σ
Expensive
Last 16Y 17.64 4.46 [8.72 · 13.18 , 22.10 · 26.56]
+3.54 σ
Expensive
Last 17Y 17.63 4.24 [9.15 · 13.39 , 21.88 · 26.12]
+3.73 σ
Expensive
Last 18Y 17.62 3.96 [9.70 · 13.66 , 21.57 · 25.53]
+4.00 σ
Expensive
Last 19Y 17.72 3.78 [10.16 · 13.94 , 21.50 · 25.28]
+4.16 σ
Expensive
Last 20Y 17.99 3.73 [10.53 · 14.26 , 21.72 · 25.45]
+4.14 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).

Swipe left to see all data
Trend Indicator Valuation Margin
Long Term Price vs SMA200 +13.79% 24 May
Short Term Price vs SMA50 +4.81% 24 May
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.