S&P 500 Health Care PE Ratio

The S&P 500 Health Care currently trades at a current P/E ratio of 24.51 as of October 24, 2025.

Over the past five years, the median P/E has been 22.31, putting today's valuation in the 61.7th percentile of that range. Looking at the longer 10-year period, where the median sits at 19.19, the current reading ranks in the 80.8th percentile - a level historically associated with Expensive pricing. The 20-year median of 18.1 provides additional context, with the current ratio in the 90.4th percentile of that extended timeframe.

Since April 1996, the S&P 500 Health Care has recorded a median P/E ratio of 18.51 over 30 years. Against this full historical backdrop, the current valuation sits in the 81.4th 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 (24.51) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	27.28	25	Undervalued
5 Year	22.31	61.7	Overvalued
10 Year	19.19	80.8	Expensive
20 Year	18.1	90.4	Expensive
Since Apr 1996	18.51	81.4	Expensive

Forward P/E for S&P 500 Health Care

Returns vs P/E Ratio

Over the past decade, the PE rose from 19.1 (68.9th percentile) to 24.51 (80.8th percentile). Annualized total return over this period was 8.0%. 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	32.91	99.2	-3%	-3%
3 Year	17.38	34.6	+13.2%	+4.2%
5 Year	16.87	32.9	+35.4%	+6.2%
10 Year	19.12	68.9	+116.5%	+8%

Historical Data (1996-2025)

Date	Current PE Ratio
Oct 2025	24.51
Sep 2025	24.29
Aug 2025	24.74
Jul 2025	24.51
Jun 2025	25.32
May 2025	24.89
Apr 2025	30.77
Mar 2025	29.24
Feb 2025	32.17
Jan 2025	32.76
Dec 2024	32.41
Nov 2024	32.07
Oct 2024	32.91
Sep 2024	33.95
Aug 2024	35.06
Jul 2024	34.42
Jun 2024	33.39
May 2024	32.52
Apr 2024	31.84
Mar 2024	31.15
Feb 2024	30.03
Jan 2024	27.92
Dec 2023	27.80
Nov 2023	24.80
Oct 2023	24.17
Sep 2023	25.29
Aug 2023	23.96
Jul 2023	24.99
Jun 2023	23.36
May 2023	22.83
Apr 2023	21.80
Mar 2023	21.41
Feb 2023	21.46
Jan 2023	17.76
Dec 2022	18.88
Nov 2022	18.38
Oct 2022	17.38
Sep 2022	17.92
Aug 2022	18.70
Jul 2022	18.58
Jun 2022	18.49
May 2022	18.97
Apr 2022	20.07
Mar 2022	19.74
Feb 2022	19.30
Jan 2022	19.68
Dec 2021	20.09
Nov 2021	19.62
Oct 2021	18.99
Sep 2021	19.04
Aug 2021	19.29
Jul 2021	18.59
Jun 2021	18.06
May 2021	17.95
Apr 2021	17.50
Mar 2021	16.98
Feb 2021	17.10
Jan 2021	17.30
Dec 2020	17.76
Nov 2020	17.38
Oct 2020	16.87
Sep 2020	18.23
Aug 2020	18.57
Jul 2020	18.10
Jun 2020	18.50
May 2020	18.41
Apr 2020	17.70
Mar 2020	17.60
Feb 2020	20.26
Jan 2020	20.52
Dec 2019	20.25
Nov 2019	19.31
Oct 2019	18.23
Sep 2019	18.77
Aug 2019	18.66
Jul 2019	19.14
Jun 2019	19.01
May 2019	18.43
Apr 2019	18.62
Mar 2019	18.87
Feb 2019	18.89
Jan 2019	18.19
Dec 2018	18.51
Nov 2018	19.20
Oct 2018	19.26
Sep 2018	19.74
Aug 2018	19.18
Jul 2018	18.38
Jun 2018	18.64
May 2018	18.16
Apr 2018	18.10
Mar 2018	19.22
Feb 2018	19.37
Jan 2018	20.09
Dec 2017	19.40
Nov 2017	19.05
Oct 2017	19.33
Sep 2017	19.86
Aug 2017	19.17
Jul 2017	19.35
Jun 2017	19.27
May 2017	18.55
Apr 2017	18.28
Mar 2017	19.13
Feb 2017	18.55
Jan 2017	17.90
Dec 2016	17.99
Nov 2016	18.02
Oct 2016	18.33
Sep 2016	19.18
Aug 2016	19.70
Jul 2016	19.64
Jun 2016	19.22
May 2016	18.90
Apr 2016	19.01
Mar 2016	18.25
Feb 2016	17.75
Jan 2016	18.35
Dec 2015	19.85
Nov 2015	19.78
Oct 2015	19.12
Sep 2015	19.71
Aug 2015	21.05
Jul 2015	21.62
Jun 2015	22.05
May 2015	21.72
Apr 2015	21.56
Mar 2015	21.61
Feb 2015	21.04
Jan 2015	20.79
Dec 2014	20.96
Nov 2014	20.53
Oct 2014	19.21
Sep 2014	19.72
Aug 2014	19.02
Jul 2014	18.93
Jun 2014	18.55
May 2014	17.99
Apr 2014	17.74
Mar 2014	18.93
Feb 2014	18.54
Jan 2014	18.09
Dec 2013	18.01
Nov 2013	17.75
Oct 2013	17.07
Sep 2013	17.08
Aug 2013	16.84
Jul 2013	16.70
Jun 2013	16.77
May 2013	16.95
Apr 2013	16.54
Mar 2013	15.88
Feb 2013	15.34
Jan 2013	14.89
Dec 2012	14.58
Nov 2012	14.30
Oct 2012	14.71
Sep 2012	14.52
Aug 2012	14.08
Jul 2012	13.93
Jun 2012	13.53
May 2012	13.48
Apr 2012	13.66
Mar 2012	13.38
Feb 2012	13.15
Jan 2012	12.97
Dec 2011	12.33
Nov 2011	11.97
Oct 2011	11.84
Sep 2011	11.83
Aug 2011	11.65
Jul 2011	12.90
Jun 2011	12.71
May 2011	12.96
Apr 2011	12.31
Mar 2011	12.05
Feb 2011	11.97
Jan 2011	11.87
Dec 2010	11.71
Nov 2010	11.56
Oct 2010	11.59
Sep 2010	11.26
Aug 2010	10.92
Jul 2010	10.80
Jun 2010	11.30
May 2010	11.58
Apr 2010	12.37
Mar 2010	12.77
Feb 2010	12.45
Jan 2010	12.73
Dec 2009	12.87
Nov 2009	10.89
Oct 2009	10.89
Sep 2009	10.89
Aug 2009	10.89
Jul 2009	10.89
Jun 2009	10.56
May 2009	9.82
Apr 2009	9.94
Mar 2009	10.09
Feb 2009	10.28
Jan 2009	10.49
Dec 2008	10.75
Nov 2008	11.27
Oct 2008	11.59
Sep 2008	12.07
Aug 2008	12.64
Jul 2008	12.92
Jun 2008	13.07
May 2008	13.46
Apr 2008	14.48
Mar 2008	14.83
Feb 2008	14.85
Jan 2008	14.85
Dec 2007	15.60
Nov 2007	15.60
Oct 2007	15.11
Sep 2007	15.11
Aug 2007	16.27
Jul 2007	16.27
Jun 2007	16.27
May 2007	16.82
Apr 2007	16.22
Mar 2007	16.22
Feb 2007	16.42
Jan 2007	16.42
Dec 2006	16.42
Nov 2006	16.80
Oct 2006	16.80
Sep 2006	16.80
Aug 2006	15.93
Jul 2006	15.93
Jun 2006	15.93
May 2006	16.57
Apr 2006	16.57
Mar 2006	17.69
Feb 2006	17.11
Jan 2006	17.11
Dec 2005	17.11
Nov 2005	17.11
Oct 2005	17.11
Sep 2005	17.71
Aug 2005	17.71
Jul 2005	17.71
Jun 2005	17.40
May 2005	17.40
Apr 2005	17.40
Mar 2005	17
Feb 2005	17
Jan 2005	17
Dec 2004	16.37
Nov 2004	16.37
Oct 2004	16.99
Sep 2004	16.99
Aug 2004	17.55
Jul 2004	18.04
Jun 2004	18.04
May 2004	18.04
Apr 2004	18.77
Mar 2004	18.77
Feb 2004	18.37
Jan 2004	18.37
Dec 2003	17.79
Nov 2003	18.16
Oct 2003	18.16
Sep 2003	18.16
Aug 2003	18.16
Jul 2003	19.67
Jun 2003	17.91
May 2003	17.91
Apr 2003	17.44
Mar 2003	17.99
Feb 2003	17.99
Jan 2003	18.33
Dec 2002	18.33
Nov 2002	18.33
Oct 2002	18.33
Sep 2002	18.33
Aug 2002	17.56
Jul 2002	20.07
Jun 2002	21.47
May 2002	22.24
Apr 2002	23.51
Mar 2002	24
Feb 2002	24
Jan 2002	23.47
Dec 2001	23.47
Nov 2001	23.47
Oct 2001	23.47
Sep 2001	24.89
Aug 2001	25.31
Jul 2001	25.31
Jun 2001	25.45
May 2001	25.45
Apr 2001	25.45
Mar 2001	26.83
Feb 2001	27.51
Jan 2001	29.20
Dec 2000	28.02
Nov 2000	27.51
Oct 2000	26.84
Sep 2000	26.87
Aug 2000	26.87
Jul 2000	26.87
Jun 2000	26.27
May 2000	26.27
Apr 2000	23.20
Mar 2000	25.25
Feb 2000	25.25
Jan 2000	25.98
Dec 1999	26.58
Nov 1999	26.93
Oct 1999	26.93
Sep 1999	26.93
Aug 1999	26.93
Jul 1999	27.42
Jun 1999	29.07
May 1999	31.11
Apr 1999	29.36
Mar 1999	29.23
Feb 1999	29.23
Jan 1999	29.23
Dec 1998	28.38
Nov 1998	27.15
Oct 1998	29.14
Sep 1998	29.14
Aug 1998	29.14
Jul 1998	27.76
Jun 1998	27.76
May 1998	27.76
Apr 1998	26.80
Mar 1998	26.80
Feb 1998	24.88
Jan 1998	24.32
Dec 1997	23.71
Nov 1997	23.32
Oct 1997	22.33
Sep 1997	23.82
Aug 1997	23.82
Jul 1997	21.67
Jun 1997	21.67
May 1997	20.98
Apr 1997	20.27
Mar 1997	20.94
Feb 1997	21.56
Jan 1997	20.11
Dec 1996	19.59
Nov 1996	19.08
Oct 1996	18.05
Sep 1996	18.05
Aug 1996	18.05
Jul 1996	18.41
Jun 1996	18.41
May 1996	18.41
Apr 1996	19.40

Sector Comparison

The table below shows a comparison of the current P/E Ratio (24.51) 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 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 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 Health Care 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.