SP&500 Sectors and current P/E Ratios

The sectors of the S&P 500 index are 11 distinct groups of companies that operate in similar industries or sectors. Each sector has its own index and represents a particular portion of the overall market based on their respective size and weight in the S&P 500 index.

The 11 sectors are: Communication Services, Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Information Technology, Materials, Real Estate and Utilities.

Investors can invest in specific sectors, to build a diversified portfolio. It's advaisable to check whether a sector is particularly expensive, by looking at its P/E.

Furthermore, you can check if a stock is undervalued compared to its sector, by comparing its P/E with the sector's one.

Highest P/E Ratio:
Information Technology: 38.51
Highest deviation vs 10Y Avg P/E:
Financials: +4.80 σ
S&P 500 SECTORS P/E RATIO
Global Industry Classification Standard (GICS)
Last Update: 05 May 2025
Swipe left to see all data
P/E Evaluation
Historical P/E Average
P/E Deviation vs Avg
Trend Margin
S&P 500 Sector P/E Ratio▾ 5 Years 10 Years 20 Years 5 Years 10 Years 20 Years 5 Years 10 Years 20 Years vs SMA-200 Time (ET)
XLK Information Technology 38.51
Expensive
Expensive
Expensive
 29.58 23.15 18.48
+2.53 σ
+2.76 σ
+4.40 σ
 -3.39% 03:59 PM
XLRE Real Estate 38.36
Fair
Fair
-
 39.28 38.10 -
-0.15 σ
+0.07 σ
-
 -1.02% 03:59 PM
XLV Health Care 30.42
Overvalued
Expensive
Expensive
 22.58 20.19 17.50
+1.56 σ
+3.80 σ
+5.22 σ
 -5.85% 03:59 PM
XLY Consumer Discretionary 27.79
Fair
Overvalued
Expensive
 27.77 23.36 19.34
+0.00 σ
+1.15 σ
+2.32 σ
 -2.81% 03:59 PM
SPY S&P 500 Index 27.75
Expensive
Expensive
Expensive
 21.84 18.82 15.99
+2.41 σ
+3.51 σ
+4.82 σ
 -1.73% 03:59 PM
XLI Industrials 27.37
Expensive
Expensive
Expensive
 22.20 18.96 16.47
+2.30 σ
+2.93 σ
+4.77 σ
 +1.07% 03:59 PM
XLB Materials 26.78
Expensive
Expensive
Expensive
 19.21 17.47 15.69
+2.46 σ
+4.48 σ
+5.59 σ
 -5.80% 03:59 PM
XLP Consumer Staples 23.68
Overvalued
Expensive
Expensive
 22.04 20.42 18.02
+1.04 σ
+2.16 σ
+2.64 σ
 +1.02% 03:59 PM
XLU Utilities 21.91
Expensive
Expensive
Expensive
 19.62 18.38 16.30
+2.13 σ
+2.69 σ
+2.88 σ
 +2.30% 03:59 PM
XLC Communication Services 21.49
Fair
Overvalued
Expensive
 20.96 17.42 15.71
+0.25 σ
+1.14 σ
+2.24 σ
 +3.85% 03:59 PM
XLF Financials 19.25
Expensive
Expensive
Expensive
 14.73 13.65 12.75
+2.97 σ
+4.80 σ
+5.41 σ
 +3.78% 03:59 PM
XLE Energy 16.68
Fair
Fair
Fair
 13.61 18.96 14.27
+0.55 σ
-0.30 σ
+0.48 σ
 -9.66% 03:59 PM
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). Additionally, P/E values greater than 70 or lower than 1 are logarithmically normalized to reduce distortions.

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".

The Trend is considered positive if the ETF price is higher than the 200-day moving average (SMA).

S&P 500 SECTORS - EVALUATION DIAGRAM
Long Term Trend and P/E Ratio
Last Update: 05 May 2025

Sector Details

Defensive sectors are those that tend to perform well in economic downturns because they offer products or services that are necessary for everyday life. These sectors include Consumer Staples, Health Care, and Utilities.

  • Consumer Staples include products such as food, beverages, and household goods, which are necessary for daily living.
  • Health Care includes companies in the healthcare industry, which will always be necessary no matter the economic climate.
  • Utilities include companies that provide essential services such as electricity, water, and gas.

Non-defensive sectors, on the other hand, are those that tend to perform well in economic boom times. These sectors include Consumer Discretionary and Information Technology/Communication Services.

  • Consumer Discretionary includes companies that sell products that people can live without, such as luxury goods and entertainment.
  • Information Technology and Communication Services include companies that provide technology-related services and products, such as software and hardware.

The remaining sectors, Energy, Financials, Industrials, Materials and Real Estate, are not necessarily defensive or non-defensive as a whole. They can be influenced by factors such as interest rates, commodity prices, and economic growth.