S&P 500 Financials PE Ratio

The S&P 500 Financials currently trades at a current P/E ratio of 19.32 as of October 24, 2025.

Over the past five years, the median P/E has been 14.61, putting today's valuation in the 98.3th percentile of that range. Looking at the longer 10-year period, where the median sits at 13.46, the current reading ranks among the highest historically - a level historically associated with Expensive pricing. The 20-year median of 12.59 provides additional context, with the current ratio at the highest level of that extended timeframe.

Since June 1996, the S&P 500 Financials has recorded a median P/E ratio of 12.65 over 29 years. Against this full historical backdrop, the current valuation sits at the highest level 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 (19.32) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	17.98	91.7	Expensive
5 Year	14.61	98.3	Expensive
10 Year	13.46	99.2	Expensive
20 Year	12.59	99.6	Expensive
Since Jun 1996	12.65	99.7	Expensive

Forward 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 19.32 (99.2th 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 (1996-2025)

Date	Current PE Ratio
Oct 2025	19.32
Sep 2025	19.40
Aug 2025	18.83
Jul 2025	17.28
Jun 2025	17.28
May 2025	16.81
Apr 2025	18.76
Mar 2025	18.01
Feb 2025	16.90
Jan 2025	17.94
Dec 2024	17.42
Nov 2024	18.45
Oct 2024	18.03
Sep 2024	18.06
Aug 2024	18.19
Jul 2024	16.77
Jun 2024	16.42
May 2024	15.75
Apr 2024	16.50
Mar 2024	16.15
Feb 2024	16.28
Jan 2024	15.37
Dec 2023	14.73
Nov 2023	12.71
Oct 2023	12.89
Sep 2023	13.16
Aug 2023	16.75
Jul 2023	17.71
Jun 2023	16.11
May 2023	14.29
Apr 2023	14.95
Mar 2023	12.26
Feb 2023	13.90
Jan 2023	12.32
Dec 2022	12.32
Nov 2022	10.81
Oct 2022	10.81
Sep 2022	12.18
Aug 2022	11.39
Jul 2022	11.39
Jun 2022	11.94
May 2022	12.74
Apr 2022	13.62
Mar 2022	14.12
Feb 2022	14.64
Jan 2022	14.77
Dec 2021	14.77
Nov 2021	14.37
Oct 2021	13.90
Sep 2021	13.90
Aug 2021	13.90
Jul 2021	14.03
Jun 2021	14.03
May 2021	14.58
Apr 2021	14.58
Mar 2021	14.58
Feb 2021	13.11
Jan 2021	14.35
Dec 2020	12.39
Nov 2020	12.39
Oct 2020	12.83
Sep 2020	13.84
Aug 2020	13.84
Jul 2020	14.84
Jun 2020	14.84
May 2020	13.75
Apr 2020	12.58
Mar 2020	8.47
Feb 2020	12.98
Jan 2020	12.98
Dec 2019	12.80
Nov 2019	11.75
Oct 2019	11.75
Sep 2019	11.75
Aug 2019	11.22
Jul 2019	11.60
Jun 2019	11.60
May 2019	11.27
Apr 2019	11.27
Mar 2019	11.27
Feb 2019	10.50
Jan 2019	10.50
Dec 2018	11.02
Nov 2018	11.02
Oct 2018	12.11
Sep 2018	12.23
Aug 2018	12.23
Jul 2018	12.58
Jun 2018	12.58
May 2018	12.58
Apr 2018	13.31
Mar 2018	13.31
Feb 2018	14.02
Jan 2018	14.69
Dec 2017	14.69
Nov 2017	13.28
Oct 2017	13.28
Sep 2017	13.28
Aug 2017	13.76
Jul 2017	13.26
Jun 2017	13.26
May 2017	13.26
Apr 2017	13.78
Mar 2017	13.78
Feb 2017	14.03
Jan 2017	13.58
Dec 2016	11.91
Nov 2016	11.91
Oct 2016	12.14
Sep 2016	13.57
Aug 2016	13.57
Jul 2016	13.31
Jun 2016	13.31
May 2016	13.31
Apr 2016	12.97
Mar 2016	12.97
Feb 2016	11.41
Jan 2016	13.39
Dec 2015	13.39
Nov 2015	13.53
Oct 2015	13.53
Sep 2015	12.65
Aug 2015	13.78
Jul 2015	13.78
Jun 2015	13.68
May 2015	13.68
Apr 2015	13.68
Mar 2015	13.68
Feb 2015	13.76
Jan 2015	13.76
Dec 2014	13.76
Nov 2014	13.13
Oct 2014	13.13
Sep 2014	13.51
Aug 2014	13.51
Jul 2014	13.48
Jun 2014	13.48
May 2014	13.48
Apr 2014	13.20
Mar 2014	12.42
Feb 2014	12.42
Jan 2014	12.97
Dec 2013	12.33
Nov 2013	12.33
Oct 2013	12.33
Sep 2013	12.61
Aug 2013	12.61
Jul 2013	12.61
Jun 2013	12.35
May 2013	11.91
Apr 2013	11.91
Mar 2013	11.91
Feb 2013	11.42
Jan 2013	11.42
Dec 2012	10.63
Nov 2012	10.63
Oct 2012	11.12
Sep 2012	10.79
Aug 2012	10.24
Jul 2012	10.24
Jun 2012	10.24
May 2012	11.36
Apr 2012	11.36
Mar 2012	10.96
Feb 2012	10.96
Jan 2012	10.30
Dec 2011	9.20
Nov 2011	8.75
Oct 2011	8.80
Sep 2011	8.80
Aug 2011	10.55
Jul 2011	10.55
Jun 2011	10.55
May 2011	11.56
Apr 2011	11.56
Mar 2011	12.12
Feb 2011	11.80
Jan 2011	11.13
Dec 2010	11.13
Nov 2010	11.13
Oct 2010	10.80
Sep 2010	10.80
Aug 2010	10.80
Jul 2010	11.19
Jun 2010	12.33
May 2010	12.33
Apr 2010	15.46
Mar 2010	13.41
Feb 2010	14.67
Jan 2010	14.67
Dec 2009	14.67
Nov 2009	15.33
Oct 2009	17.02
Sep 2009	16.47
Aug 2009	14.03
Jul 2009	14.03
Jun 2009	16.37
May 2009	17.05
Apr 2009	12.33
Mar 2009	8.02
Feb 2009	10.31
Jan 2009	9.19
Dec 2008	9.19
Nov 2008	7.99
Oct 2008	10.78
Sep 2008	12.17
Aug 2008	12.96
Jul 2008	10.41
Jun 2008	11.91
May 2008	11.51
Apr 2008	10.77
Mar 2008	10.77
Feb 2008	10.14
Jan 2008	10.14
Dec 2007	10.14
Nov 2007	9.59
Oct 2007	10.18
Sep 2007	10.18
Aug 2007	11.33
Jul 2007	11.33
Jun 2007	11.86
May 2007	11.83
Apr 2007	11.83
Mar 2007	12.34
Feb 2007	12.34
Jan 2007	12.16
Dec 2006	12.16
Nov 2006	11.80
Oct 2006	11.80
Sep 2006	11.30
Aug 2006	11.30
Jul 2006	11.30
Jun 2006	11.81
May 2006	11.81
Apr 2006	11.81
Mar 2006	11.82
Feb 2006	11.82
Jan 2006	11.82
Dec 2005	11.30
Nov 2005	11.30
Oct 2005	11.36
Sep 2005	11.36
Aug 2005	11.30
Jul 2005	11.30
Jun 2005	11.30
May 2005	11.30
Apr 2005	11.80
Mar 2005	11.80
Feb 2005	12.02
Jan 2005	12.02
Dec 2004	11.61
Nov 2004	11.61
Oct 2004	11.61
Sep 2004	11.59
Aug 2004	11.59
Jul 2004	11.59
Jun 2004	12.15
May 2004	12.15
Apr 2004	12.96
Mar 2004	12.96
Feb 2004	12.41
Jan 2004	12.41
Dec 2003	12.33
Nov 2003	12.33
Oct 2003	12.33
Sep 2003	12.49
Aug 2003	12.49
Jul 2003	12.21
Jun 2003	11.64
May 2003	11.64
Apr 2003	11.13
Mar 2003	11.13
Feb 2003	11.68
Jan 2003	11.49
Dec 2002	11.49
Nov 2002	11.49
Oct 2002	11.81
Sep 2002	11.81
Aug 2002	11.81
Jul 2002	12.89
Jun 2002	13.53
May 2002	14.09
Apr 2002	13.92
Mar 2002	13.92
Feb 2002	14.17
Jan 2002	14.17
Dec 2001	12.56
Nov 2001	12.56
Oct 2001	12.56
Sep 2001	15.03
Aug 2001	15.03
Jul 2001	15.01
Jun 2001	15.01
May 2001	15.01
Apr 2001	13.82
Mar 2001	15.72
Feb 2001	15.72
Jan 2001	14.60
Dec 2000	14.60
Nov 2000	14.12
Oct 2000	15.22
Sep 2000	14.20
Aug 2000	14.20
Jul 2000	14.20
Jun 2000	13.59
May 2000	12.52
Apr 2000	12.52
Mar 2000	12.52
Feb 2000	13.64
Jan 2000	14.03
Dec 1999	14.73
Nov 1999	13.51
Oct 1999	13.51
Sep 1999	15.66
Aug 1999	15.66
Jul 1999	16.76
Jun 1999	16.76
May 1999	16.76
Apr 1999	15.73
Mar 1999	15.73
Feb 1999	15.11
Jan 1999	15.11
Dec 1998	13.01
Nov 1998	13.01
Oct 1998	14.52
Sep 1998	15.63
Aug 1998	17.67
Jul 1998	17.52
Jun 1998	17.52
May 1998	17.52
Apr 1998	16.33
Mar 1998	16.33
Feb 1998	14.96
Jan 1998	15.30
Dec 1997	15.30
Nov 1997	15.30
Oct 1997	14.81
Sep 1997	14.41
Aug 1997	14.41
Jul 1997	13.64
Jun 1997	13.64
May 1997	12.40
Apr 1997	13.52
Mar 1997	13.52
Feb 1997	12.28
Jan 1997	11.83
Dec 1996	11.83
Nov 1996	11.22
Oct 1996	10.74
Sep 1996	10.74
Aug 1996	10.32
Jul 1996	10.32
Jun 1996	10.70

Sector Comparison

The table below shows a comparison of the current P/E Ratio (19.32) 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 Communication Services	19.84	64.20	Overvalued
S&P 500 Utilities	22.47	98.30	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 Financials 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.