Below is an updated look at our sector valuation charts, using trailing 12-month P/E ratios.

The S&P 500’s P/E ratio has gone sideways around the 18.5 level for the past few months as the market has gone nowhere.

The last time we posted our sector P/E ratio charts, we warned readers of the elevated valuation for the Utilities sector.  At one point last year the P/E for Utilities was higher than that of the S&P 500 as well as the Technology sector.  That’s what extremely low risk-free rates will do to the market.  As rates have risen this year, we’ve seen Utilities stocks get crushed, and the sector’s P/E has now fallen back down into the 15s.

As of today, Health Care has the highest P/E of any sector at 24.30, followed by Consumer Discretionary at 22.19.  No other sector is above 20.

For more in-depth sector analysis, sign up for Bespoke Premium or Bespoke Institutional and access our weekly Sector Snapshot.  This week’s was just published.  You can start a 5-day free trial to either service at our Subscribe page.


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