S&P 500 Financials Forward PE Ratio

The S&P 500 Financials currently trades at a forward P/E ratio of 16.05 as of October 24, 2025.

Over the past five years, the median forward P/E has been 14.02, putting today's valuation in the 71.7th percentile of that range. Looking at the longer 10-year period, where the median sits at 13.59, the current reading ranks in the 83.3th percentile - a level historically associated with Expensive pricing. The 20-year median of 13.04 provides additional context, with the current ratio in the 85.4th percentile of that extended timeframe.

Since August 2000, the S&P 500 Financials has recorded a median forward P/E ratio of 12.99 over 25 years. Against this full historical backdrop, the current valuation sits in the 84.5th 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 forward P/E Ratio (16.05) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	16.42	25	Undervalued
5 Year	14.02	71.7	Overvalued
10 Year	13.59	83.3	Expensive
20 Year	13.04	85.4	Expensive
Since Aug 2000	12.99	84.5	Expensive

Trailing P/E for S&P 500 Financials

Returns vs P/E Ratio

Over the past decade, the PE rose from 13.5 (68th percentile) to 16.05 (83.3th percentile). Annualized total return over this period was 10.6%. 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	18.03	97	+12.9%	+12.9%
3 Year	10.81	14.6	+63%	+17.7%
5 Year	12.83	54.5	+110.6%	+16.1%
10 Year	13.53	68	+174.5%	+10.6%

Historical Data (2000-2025)

Date	Forward PE Ratio
Oct 2025	16.05
Sep 2025	16.57
Aug 2025	16.56
Jul 2025	16.08
Jun 2025	16.35
May 2025	15.86
Apr 2025	15.21
Mar 2025	16.49
Feb 2025	17.23
Jan 2025	17.01
Dec 2024	16.16
Nov 2024	17.11
Oct 2024	15.53
Sep 2024	15.47
Aug 2024	15.57
Jul 2024	14.92
Jun 2024	14.02
May 2024	14.17
Apr 2024	13.75
Mar 2024	14.10
Feb 2024	13.47
Jan 2024	12.96
Dec 2023	12.97
Nov 2023	12.33
Oct 2023	11.14
Sep 2023	12.59
Aug 2023	13.01
Jul 2023	13.39
Jun 2023	13.07
May 2023	12.27
Apr 2023	12.85
Mar 2023	12.29
Feb 2023	13.62
Jan 2023	13.96
Dec 2022	12.99
Nov 2022	13.74
Oct 2022	12.86
Sep 2022	11.37
Aug 2022	12.35
Jul 2022	12.63
Jun 2022	14.69
May 2022	16.52
Apr 2022	16.11
Mar 2022	18.59
Feb 2022	18.65
Jan 2022	18.94
Dec 2021	16.62
Nov 2021	16.12
Oct 2021	17.11
Sep 2021	14.43
Aug 2021	14.72
Jul 2021	14.02
Jun 2021	10.92
May 2021	11.27
Apr 2021	10.77
Mar 2021	9.43
Feb 2021	8.93
Jan 2021	8.02
Dec 2020	8.41
Nov 2020	7.93
Oct 2020	6.80
Sep 2020	6.96
Aug 2020	7.22
Jul 2020	6.94
Jun 2020	7.84
May 2020	7.88
Apr 2020	7.70
Mar 2020	10.46
Feb 2020	13.33
Jan 2020	15.03
Dec 2019	16.83
Nov 2019	16.42
Oct 2019	15.66
Sep 2019	16.03
Aug 2019	15.34
Jul 2019	16.16
Jun 2019	14.45
May 2019	13.56
Apr 2019	14.64
Mar 2019	9.72
Feb 2019	9.99
Jan 2019	9.78
Dec 2018	10.86
Nov 2018	12.26
Oct 2018	11.95
Sep 2018	12.73
Aug 2018	13.04
Jul 2018	12.89
Jun 2018	12.69
May 2018	12.95
Apr 2018	13.10
Mar 2018	14.47
Feb 2018	15.14
Jan 2018	15.60
Dec 2017	13.66
Nov 2017	13.42
Oct 2017	12.99
Sep 2017	14.24
Aug 2017	13.56
Jul 2017	13.81
Jun 2017	14.64
May 2017	13.77
Apr 2017	13.97
Mar 2017	14.66
Feb 2017	15.10
Jan 2017	14.38
Dec 2016	14.80
Nov 2016	14.26
Oct 2016	12.55
Sep 2016	11.88
Aug 2016	12.24
Jul 2016	11.81
Jun 2016	12.11
May 2016	12.55
Apr 2016	12.32
Mar 2016	12.61
Feb 2016	11.78
Jan 2016	12.16
Dec 2015	13.84
Nov 2015	14.18
Oct 2015	13.94
Sep 2015	13.76
Aug 2015	14.21
Jul 2015	15.27
Jun 2015	14.58
May 2015	14.65
Apr 2015	14.41
Mar 2015	13.96
Feb 2015	14.07
Jan 2015	13.32
Dec 2014	14.39
Nov 2014	14.16
Oct 2014	13.86
Sep 2014	13.64
Aug 2014	13.71
Jul 2014	13.18
Jun 2014	13.38
May 2014	13.08
Apr 2014	12.92
Mar 2014	13.55
Feb 2014	13.14
Jan 2014	12.77
Dec 2013	13.05
Nov 2013	12.79
Oct 2013	12.26
Sep 2013	12.19
Aug 2013	11.87
Jul 2013	12.53
Jun 2013	12.12
May 2013	12.34
Apr 2013	11.66
Mar 2013	11.51
Feb 2013	11.10
Jan 2013	10.97
Dec 2012	11.12
Nov 2012	10.63
Oct 2012	10.75
Sep 2012	11.05
Aug 2012	10.70
Jul 2012	10.39
Jun 2012	11
May 2012	10.49
Apr 2012	11.57
Mar 2012	12.79
Feb 2012	11.92
Jan 2012	11.37
Dec 2011	10.41
Nov 2011	10.25
Oct 2011	10.79
Sep 2011	9.33
Aug 2011	10.55
Jul 2011	11.69
Jun 2011	12.46
May 2011	12.83
Apr 2011	13.28
Mar 2011	13.44
Feb 2011	13.81
Jan 2011	13.44
Dec 2010	13.59
Nov 2010	12.29
Oct 2010	12.39
Sep 2010	12.68
Aug 2010	11.97
Jul 2010	12.99
Jun 2010	12.30
May 2010	13.08
Apr 2010	14.42
Mar 2010	14.32
Feb 2010	13.16
Jan 2010	12.73
Dec 2009	14.81
Nov 2009	15.05
Oct 2009	14.44
Sep 2009	19.19
Aug 2009	18.82
Jul 2009	16.68
Jun 2009	21.01
May 2009	21.49
Apr 2009	19
Mar 2009	26.72
Feb 2009	22.71
Jan 2009	27.84
Dec 2008	-15.06
Nov 2008	-15.17
Oct 2008	-18.66
Sep 2008	-14.96
Aug 2008	-15.78
Jul 2008	-15.99
Jun 2008	-13.43
May 2008	-16.51
Apr 2008	-17.63
Mar 2008	-15.56
Feb 2008	-16.06
Jan 2008	-18.13
Dec 2007	-100.88
Nov 2007	-107.01
Oct 2007	-116.37
Sep 2007	44.10
Aug 2007	43.23
Jul 2007	42.69
Jun 2007	22.84
May 2007	23.85
Apr 2007	23.40
Mar 2007	15.18
Feb 2007	15.32
Jan 2007	15.84
Dec 2006	13.32
Nov 2006	12.84
Oct 2006	12.81
Sep 2006	12.54
Aug 2006	12.05
Jul 2006	11.96
Jun 2006	12
May 2006	12.09
Apr 2006	12.58
Mar 2006	12.43
Feb 2006	12.42
Jan 2006	12.20
Dec 2005	12.58
Nov 2005	12.57
Oct 2005	12.05
Sep 2005	12.09
Aug 2005	12
Jul 2005	12.24
Jun 2005	12.36
May 2005	12.21
Apr 2005	11.91
Mar 2005	12.10
Feb 2005	12.61
Jan 2005	12.71
Dec 2004	13.10
Nov 2004	12.59
Oct 2004	12.24
Sep 2004	12.28
Aug 2004	12.41
Jul 2004	12.02
Jun 2004	12.56
May 2004	12.52
Apr 2004	12.31
Mar 2004	13.17
Feb 2004	13.33
Jan 2004	13
Dec 2003	12.90
Nov 2003	12.32
Oct 2003	12.37
Sep 2003	11.95
Aug 2003	11.90
Jul 2003	12.04
Jun 2003	12
May 2003	12
Apr 2003	11.42
Mar 2003	10.72
Feb 2003	10.78
Jan 2003	11.15
Dec 2002	11.94
Nov 2002	12.64
Oct 2002	12.16
Sep 2002	11.60
Aug 2002	13.16
Jul 2002	12.92
Jun 2002	14.23
May 2002	14.97
Apr 2002	15.02
Mar 2002	15.58
Feb 2002	14.62
Jan 2002	14.86
Dec 2001	15.50
Nov 2001	15.19
Oct 2001	14.20
Sep 2001	14.71
Aug 2001	15.66
Jul 2001	16.70
Jun 2001	17.25
May 2001	17.28
Apr 2001	16.64
Mar 2001	16.27
Feb 2001	16.79
Jan 2001	18
Dec 2000	17.87
Nov 2000	16.40
Oct 2000	17.46
Sep 2000	17.28
Aug 2000	16.89

Sector Comparison

The table below shows a comparison of the forward P/E Ratio (16.05) with other sectors.

Sector	PE Ratio	Percentile Rank	Rating
S&P 500 Consumer Discretionary	29.13	72.50	Overvalued
S&P 500 Consumer Staples	21.28	75.80	Overvalued
S&P 500 Health Care	17.59	7.50	Attractive
S&P 500 Industrials	24.30	72.50	Overvalued
S&P 500 Information Technology	30.61	88.30	Expensive
S&P 500 Materials	19.05	54.20	Fair Value
S&P 500 Real Estate	34.87	55	Fair Value
S&P 500 Communication Services	21.43	84.20	Expensive
S&P 500 Utilities	19.68	74.20	Overvalued
S&P 500 Energy	15.38	50.80	Fair Value

Definition: Forward P/E Ratio

The forward P/E ratio for S&P 500 Financials shows how much investors are paying for one unit of the index's expected 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 forward P/E, the EPS_i values are forecasted for the next 12 months.