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

32.50
Last update: 22 April 2024

The estimated P/E Ratio for S&P 500 Information Technology Sector is 32.50, calculated on 22 April 2024.

Considering the last 5 years, an average P/E interval is [23.06 , 29.53]. For this reason, the current P/E can be considered Overvalued

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.

22 April 2024 · P/E Ratio: 32.50
22 April 2024 · P/E Ratio: 32.50 · 1Y Average: 31.84 · 1 Std Dev range: [29.97 , 33.71] · 2 Std Dev range: [28.10 , 35.58]
22 April 2024 · P/E Ratio: 32.50 · 5Y Average: 26.30 · 1 Std Dev range: [23.06 , 29.53] · 2 Std Dev range: [19.83 , 32.76]
22 April 2024 · P/E Ratio: 32.50 · 10Y Average: 20.89 · 1 Std Dev range: [16.28 , 25.49] · 2 Std Dev range: [11.68 , 30.10]
22 April 2024 · P/E Ratio: 32.50 · 20Y Average: 17.96 · 1 Std Dev range: [14.28 , 21.64] · 2 Std Dev range: [10.60 , 25.32]
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".
22 April 2024 · P/E Ratio: 32.50 · 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
( 32.50 )
Deviation
vs μ
Valuation
Last 1Y 31.84 1.87 [28.10 · 29.97 , 33.71 · 35.58]
+0.36 σ
Fair
Last 2Y 28.52 3.25 [22.03 · 25.27 , 31.77 · 35.01]
+1.23 σ
Overvalued
Last 3Y 28.28 2.67 [22.94 · 25.61 , 30.95 · 33.62]
+1.58 σ
Overvalued
Last 4Y 27.50 2.43 [22.64 · 25.07 , 29.93 · 32.36]
+2.06 σ
Expensive
Last 5Y 26.30 3.23 [19.83 · 23.06 , 29.53 · 32.76]
+1.92 σ
Overvalued
Last 6Y 24.57 4.08 [16.40 · 20.48 , 28.65 · 32.73]
+1.94 σ
Overvalued
Last 7Y 23.49 4.26 [14.98 · 19.24 , 27.75 · 32.01]
+2.12 σ
Expensive
Last 8Y 22.36 4.38 [13.59 · 17.97 , 26.74 · 31.13]
+2.31 σ
Expensive
Last 9Y 21.49 4.49 [12.50 · 17.00 , 25.98 · 30.48]
+2.45 σ
Expensive
Last 10Y 20.89 4.61 [11.68 · 16.28 , 25.49 · 30.10]
+2.52 σ
Expensive
Last 11Y 20.09 4.58 [10.94 · 15.52 , 24.67 · 29.25]
+2.71 σ
Expensive
Last 12Y 19.40 4.69 [10.02 · 14.71 , 24.08 · 28.77]
+2.80 σ
Expensive
Last 13Y 18.61 4.76 [9.08 · 13.85 , 23.38 · 28.14]
+2.92 σ
Expensive
Last 14Y 18.10 4.72 [8.66 · 13.38 , 22.82 · 27.54]
+3.05 σ
Expensive
Last 15Y 17.97 4.56 [8.85 · 13.41 , 22.53 · 27.09]
+3.19 σ
Expensive
Last 16Y 17.56 4.37 [8.82 · 13.19 , 21.93 · 26.31]
+3.42 σ
Expensive
Last 17Y 17.58 4.16 [9.26 · 13.42 , 21.74 · 25.90]
+3.59 σ
Expensive
Last 18Y 17.57 3.88 [9.81 · 13.69 , 21.44 · 25.32]
+3.85 σ
Expensive
Last 19Y 17.67 3.71 [10.26 · 13.97 , 21.38 · 25.09]
+4.00 σ
Expensive
Last 20Y 17.96 3.68 [10.60 · 14.28 , 21.64 · 25.32]
+3.95 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 +4.74% 22 Apr
Short Term Price vs SMA50 -5.55% 22 Apr
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.