S&P 500 Communication Services PE Ratio

The S&P 500 Communication Services currently trades at a current P/E ratio of 19.84 as of October 24, 2025.

Over the past five years, the median P/E has been 20.72, putting today's valuation in the 36.7th percentile of that range. Looking at the longer 10-year period, where the median sits at 17.83, the current reading ranks in the 64.2th percentile - a level historically associated with Overvalued pricing. The 20-year median of 14.71 provides additional context, with the current ratio in the 82.1th percentile of that extended timeframe.

Since June 1996, the S&P 500 Communication Services has recorded a median P/E ratio of 15.58 over 29 years. Against this full historical backdrop, the current valuation sits in the 74.5th percentile of all recorded readings, indicating that the market is trading well above its long-term median.

Historical P/E Comparison

The table below compares the current P/E Ratio (19.84) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	20.16	41.7	Fair Value
5 Year	20.72	36.7	Undervalued
10 Year	17.83	64.2	Overvalued
20 Year	14.71	82.1	Expensive
Since Jun 1996	15.58	74.5	Overvalued

Forward P/E for S&P 500 Communication Services

Returns vs P/E Ratio

Over the past decade, the PE rose from 11.7 (3.8th percentile) to 19.84 (64.2th percentile). Annualized total return over this period was 11.3%. Percentile rank indicates position within the historical distribution. Elevated valuations do not necessarily imply immediate low returns; markets can remain richly valued for extended periods, but this warrants caution for longer-horizon return assumptions.

Time Period	Starting PE Ratio	Starting Percentile	Total Return	Annualized Return
1 Year	21.32	81.2	+36.6%	+36.6%
3 Year	13.12	17.8	+150.1%	+35.7%
5 Year	23.16	89.4	+108.9%	+15.9%
10 Year	11.68	3.8	+192.4%	+11.3%

Historical Data (1996-2025)

Date	Current PE Ratio
Oct 2025	19.84
Sep 2025	19.06
Aug 2025	19.12
Jul 2025	20.06
Jun 2025	20.27
May 2025	18.94
Apr 2025	20.70
Mar 2025	19
Feb 2025	20.43
Jan 2025	22.61
Dec 2024	20.73
Nov 2024	22.01
Oct 2024	21.32
Sep 2024	22.10
Aug 2024	21.01
Jul 2024	19.61
Jun 2024	20.49
May 2024	20.12
Apr 2024	19.58
Mar 2024	22.66
Feb 2024	22.12
Jan 2024	22.17
Dec 2023	22.05
Nov 2023	19.78
Oct 2023	23.88
Sep 2023	24.50
Aug 2023	25.53
Jul 2023	26.41
Jun 2023	24.95
May 2023	23.46
Apr 2023	21.92
Mar 2023	19.43
Feb 2023	16.41
Jan 2023	15.07
Dec 2022	14.66
Nov 2022	13.39
Oct 2022	13.12
Sep 2022	14.65
Aug 2022	15.53
Jul 2022	14.29
Jun 2022	14.84
May 2022	15.42
Apr 2022	18.15
Mar 2022	17.06
Feb 2022	18.06
Jan 2022	20.50
Dec 2021	20.09
Nov 2021	20.90
Oct 2021	20.90
Sep 2021	21.17
Aug 2021	22.06
Jul 2021	21.69
Jun 2021	21.30
May 2021	22.33
Apr 2021	22.40
Mar 2021	22.57
Feb 2021	22.74
Jan 2021	22.74
Dec 2020	22.34
Nov 2020	21.82
Oct 2020	23.16
Sep 2020	23.16
Aug 2020	22.39
Jul 2020	21.39
Jun 2020	21.39
May 2020	18.43
Apr 2020	19.28
Mar 2020	19.28
Feb 2020	19.28
Jan 2020	18.65
Dec 2019	18.02
Nov 2019	17.23
Oct 2019	17.51
Sep 2019	17.23
Aug 2019	17.64
Jul 2019	17.22
Jun 2019	16.67
May 2019	17.60
Apr 2019	17.23
Mar 2019	16.82
Feb 2019	16.46
Jan 2019	15.49
Dec 2018	16.80
Nov 2018	16.97
Oct 2018	14
Sep 2018	10.21
Aug 2018	9.64
Jul 2018	9.92
Jun 2018	9.92
May 2018	10.38
Apr 2018	10.38
Mar 2018	10.61
Feb 2018	10.92
Jan 2018	12.58
Dec 2017	11.48
Nov 2017	11.48
Oct 2017	13.06
Sep 2017	12.61
Aug 2017	12.35
Jul 2017	12.59
Jun 2017	12.59
May 2017	13.19
Apr 2017	13.60
Mar 2017	13.60
Feb 2017	14.05
Jan 2017	14.05
Dec 2016	13.03
Nov 2016	12.34
Oct 2016	13.20
Sep 2016	13.73
Aug 2016	14.44
Jul 2016	13.99
Jun 2016	13.18
May 2016	13.53
Apr 2016	13.53
Mar 2016	12.96
Feb 2016	12.69
Jan 2016	11.83
Dec 2015	11.96
Nov 2015	11.68
Oct 2015	11.68
Sep 2015	11.93
Aug 2015	12.40
Jul 2015	12.98
Jun 2015	13.27
May 2015	13.39
Apr 2015	13.78
Mar 2015	13.78
Feb 2015	13.17
Jan 2015	13.17
Dec 2014	12.90
Nov 2014	12.89
Oct 2014	13.20
Sep 2014	13.20
Aug 2014	13.64
Jul 2014	13.33
Jun 2014	13.12
May 2014	12.84
Apr 2014	12.84
Mar 2014	12.52
Feb 2014	13.39
Jan 2014	13.76
Dec 2013	14.36
Nov 2013	14.77
Oct 2013	14.24
Sep 2013	14.24
Aug 2013	14.97
Jul 2013	15.65
Jun 2013	17.83
May 2013	18.25
Apr 2013	17.73
Mar 2013	17.33
Feb 2013	16.51
Jan 2013	16.89
Dec 2012	16.89
Nov 2012	17.28
Oct 2012	19.27
Sep 2012	19.23
Aug 2012	19.23
Jul 2012	18.52
Jun 2012	17.78
May 2012	17.21
Apr 2012	17.21
Mar 2012	16.57
Feb 2012	15.69
Jan 2012	15.50
Dec 2011	15.72
Nov 2011	15.33
Oct 2011	14.57
Sep 2011	14.57
Aug 2011	15.19
Jul 2011	15.55
Jun 2011	16.13
May 2011	16.30
Apr 2011	16.11
Mar 2011	15.29
Feb 2011	15.89
Jan 2011	15.22
Dec 2010	15.12
Nov 2010	15.12
Oct 2010	14.99
Sep 2010	14.28
Aug 2010	13.55
Jul 2010	13
Jun 2010	13.44
May 2010	14.21
Apr 2010	14.21
Mar 2010	13.63
Feb 2010	14.19
Jan 2010	14.19
Dec 2009	13.93
Nov 2009	13.33
Oct 2009	13.01
Sep 2009	13.01
Aug 2009	12.41
Jul 2009	12.02
Jun 2009	12.68
May 2009	13.09
Apr 2009	12.15
Mar 2009	12.15
Feb 2009	12.66
Jan 2009	10.52
Dec 2008	9.30
Nov 2008	9.30
Oct 2008	8.98
Sep 2008	10.39
Aug 2008	11.69
Jul 2008	11.95
Jun 2008	12.66
May 2008	13.52
Apr 2008	12.68
Mar 2008	11.89
Feb 2008	12.49
Jan 2008	14.51
Dec 2007	14
Nov 2007	14
Oct 2007	15.10
Sep 2007	14.25
Aug 2007	15.31
Jul 2007	15.31
Jun 2007	15.85
May 2007	15.85
Apr 2007	14.90
Mar 2007	15.12
Feb 2007	14.44
Jan 2007	14.44
Dec 2006	14.44
Nov 2006	14.28
Oct 2006	14.28
Sep 2006	13.71
Aug 2006	13.24
Jul 2006	13.03
Jun 2006	13.03
May 2006	13.72
Apr 2006	14.24
Mar 2006	13.83
Feb 2006	14.30
Jan 2006	13.90
Dec 2005	13.65
Nov 2005	13.65
Oct 2005	14.36
Sep 2005	14.96
Aug 2005	15.21
Jul 2005	15.30
Jun 2005	15.30
May 2005	15.30
Apr 2005	15.30
Mar 2005	15.83
Feb 2005	16.08
Jan 2005	16.66
Dec 2004	17.25
Nov 2004	18.63
Oct 2004	19.31
Sep 2004	18.72
Aug 2004	18.07
Jul 2004	17.71
Jun 2004	17.92
May 2004	18.30
Apr 2004	18.11
Mar 2004	17.83
Feb 2004	17.53
Jan 2004	16.26
Dec 2003	14.80
Nov 2003	14.57
Oct 2003	14.57
Sep 2003	14.57
Aug 2003	15.15
Jul 2003	15.98
Jun 2003	15.21
May 2003	13.71
Apr 2003	14.31
Mar 2003	14.31
Feb 2003	14.97
Jan 2003	15.77
Dec 2002	15.24
Nov 2002	14.60
Oct 2002	13.57
Sep 2002	13.82
Aug 2002	14.21
Jul 2002	15.23
Jun 2002	16.90
May 2002	17.82
Apr 2002	18.53
Mar 2002	18.85
Feb 2002	19.18
Jan 2002	20.98
Dec 2001	21.68
Nov 2001	21.68
Oct 2001	25.10
Sep 2001	26.26
Aug 2001	25.33
Jul 2001	24.90
Jun 2001	26.54
May 2001	25
Apr 2001	23.58
Mar 2001	22.40
Feb 2001	25.20
Jan 2001	25.20
Dec 2000	23.18
Nov 2000	20.59
Oct 2000	22.24
Sep 2000	22.65
Aug 2000	24.85
Jul 2000	24.07
Jun 2000	24.56
May 2000	24.56
Apr 2000	24.47
Mar 2000	25.10
Feb 2000	25.48
Jan 2000	27.70
Dec 1999	26.40
Nov 1999	23.96
Oct 1999	23.96
Sep 1999	25.30
Aug 1999	26.22
Jul 1999	27.53
Jun 1999	27.35
May 1999	27.16
Apr 1999	27.16
Mar 1999	26.86
Feb 1999	26.51
Jan 1999	24.23
Dec 1998	21.47
Nov 1998	20.15
Oct 1998	19.89
Sep 1998	20.70
Aug 1998	21.23
Jul 1998	20.97
Jun 1998	20.97
May 1998	21.70
Apr 1998	20.61
Mar 1998	19.92
Feb 1998	19.69
Jan 1998	19.36
Dec 1997	18.78
Nov 1997	17.63
Oct 1997	16.87
Sep 1997	16.35
Aug 1997	16.35
Jul 1997	16.35
Jun 1997	15.58
May 1997	14.30
Apr 1997	15.06
Mar 1997	15.06
Feb 1997	14.34
Jan 1997	13.46
Dec 1996	13.10
Nov 1996	12.87
Oct 1996	12.87
Sep 1996	13.06
Aug 1996	13.34
Jul 1996	13.34
Jun 1996	13.94

Sector Comparison

The table below shows a comparison of the current P/E Ratio (19.84) with other sectors.

Sector	PE Ratio	Percentile Rank	Rating
S&P 500 Consumer Discretionary	29.74	85.80	Expensive
S&P 500 Consumer Staples	22.25	75	Overvalued
S&P 500 Health Care	24.51	80.80	Expensive
S&P 500 Industrials	26.90	97.50	Expensive
S&P 500 Information Technology	40.44	99.20	Expensive
S&P 500 Materials	26.32	98.30	Expensive
S&P 500 Real Estate	35.48	35	Undervalued
S&P 500 Utilities	22.47	98.30	Expensive
S&P 500 Financials	19.32	99.20	Expensive
S&P 500 Energy	16.98	58.30	Fair Value

Definition: Trailing P/E Ratio

The trailing P/E ratio for S&P 500 Communication Services shows how much investors are paying for one unit of the index's past earnings.
It is calculated as : P/E = Index level / Aggregated EPS
Aggregated EPS means the index's total earnings per share after weighting each stock in the index (usually by its market capitalization): Aggregated EPS = sum(weight_i * EPS_i). For trailing P/E, the EPS_i values are the actual earnings from the past 12 months.