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

24.82
Last update: 21 February 2025

The estimated P/E Ratio for S&P 500 Materials Sector is 24.82, calculated on 21 February 2025.

Considering the last 5 years, an average P/E interval is [16.06 , 21.57]. For this reason, the current P/E can be considered Expensive

P/E Ratio is calculated on the XLB Etf, whose benchmark is the S&P 500 Materials 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 Materials 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: 24.82
21 February 2025 · P/E Ratio: 24.82 · 1Y Average: 24.35 · 1 Std Dev range: [23.92 , 24.78] · 2 Std Dev range: [23.49 , 25.21]
21 February 2025 · P/E Ratio: 24.82 · 5Y Average: 18.81 · 1 Std Dev range: [16.06 , 21.57] · 2 Std Dev range: [13.30 , 24.33]
21 February 2025 · P/E Ratio: 24.82 · 10Y Average: 17.28 · 1 Std Dev range: [15.48 , 19.08] · 2 Std Dev range: [13.67 , 20.88]
21 February 2025 · P/E Ratio: 24.82 · 20Y Average: 15.59 · 1 Std Dev range: [13.70 , 17.48] · 2 Std Dev range: [11.82 , 19.37]
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: 24.82 · 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
( 24.82 )		 Deviation
vs μ		 Valuation
Last 1Y 24.35 0.43 [23.49 · 23.92 , 24.78 · 25.21]
+1.08 σ
Overvalued
Last 2Y 21.04 3.17 [14.71 · 17.87 , 24.20 · 27.37]
+1.19 σ
Overvalued
Last 3Y 18.40 3.69 [11.03 · 14.72 , 22.09 · 25.78]
+1.74 σ
Overvalued
Last 4Y 18.11 3.03 [12.05 · 15.08 , 21.14 · 24.18]
+2.21 σ
Expensive
Last 5Y 18.81 2.76 [13.30 · 16.06 , 21.57 · 24.33]
+2.18 σ
Expensive
Last 6Y 18.19 2.44 [13.31 · 15.75 , 20.63 · 23.07]
+2.72 σ
Expensive
Last 7Y 17.64 2.38 [12.88 · 15.26 , 20.02 · 22.39]
+3.02 σ
Expensive
Last 8Y 17.59 1.98 [13.64 · 15.61 , 19.56 · 21.54]
+3.66 σ
Expensive
Last 9Y 17.44 1.78 [13.88 · 15.66 , 19.23 · 21.01]
+4.14 σ
Expensive
Last 10Y 17.28 1.80 [13.67 · 15.48 , 19.08 · 20.88]
+4.19 σ
Expensive
Last 11Y 17.08 1.62 [13.85 · 15.47 , 18.70 · 20.32]
+4.78 σ
Expensive
Last 12Y 16.81 1.67 [13.47 · 15.14 , 18.48 · 20.15]
+4.79 σ
Expensive
Last 13Y 16.44 1.79 [12.86 · 14.65 , 18.23 · 20.01]
+4.69 σ
Expensive
Last 14Y 16.12 1.93 [12.26 · 14.19 , 18.05 · 19.98]
+4.50 σ
Expensive
Last 15Y 16.00 1.93 [12.13 · 14.06 , 17.93 · 19.86]
+4.57 σ
Expensive
Last 16Y 16.16 1.99 [12.19 · 14.18 , 18.15 · 20.14]
+4.36 σ
Expensive
Last 17Y 15.95 2.02 [11.92 · 13.93 , 17.97 · 19.99]
+4.39 σ
Expensive
Last 18Y 15.83 1.91 [12.01 · 13.92 , 17.74 · 19.65]
+4.70 σ
Expensive
Last 19Y 15.66 1.92 [11.82 · 13.74 , 17.58 · 19.50]
+4.77 σ
Expensive
Last 20Y 15.59 1.89 [11.82 · 13.70 , 17.48 · 19.37]
+4.88 σ
Expensive

S&P 500 Materials Sector Trend

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

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 -3.15% 21 Feb
Short Term Price vs SMA50 +0.53% 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.