S&P 500 Industrials Forward PE Ratio

The S&P 500 Industrials currently trades at a forward P/E ratio of 24.3 as of October 24, 2025.

Over the past five years, the median forward P/E has been 22.93, putting today's valuation in the 70th percentile of that range. Looking at the longer 10-year period, where the median sits at 19.87, the current reading ranks in the 72.5th percentile - a level historically associated with Overvalued pricing.

Since January 2009, the S&P 500 Industrials has recorded a median forward P/E ratio of 17.19 over 17 years. Against this full historical backdrop, the current valuation sits in the 83.7th 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 (24.3) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	24.58	33.3	Undervalued
5 Year	22.93	70	Overvalued
10 Year	19.87	72.5	Overvalued
Since Jan 2009	17.19	83.7	Expensive

Trailing P/E for S&P 500 Industrials

Returns vs P/E Ratio

Over the past decade, the PE rose from 14.3 (29.7th percentile) to 24.3 (72.5th percentile). Annualized total return over this period was 11.0%. 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	27.13	96.6	+13.6%	+13.6%
3 Year	15.61	35.1	+72.4%	+19.9%
5 Year	23.54	96.1	+90.9%	+13.8%
10 Year	14.33	29.7	+184.6%	+11%

Historical Data (2009-2025)

Date	Forward PE Ratio
Oct 2025	24.30
Sep 2025	25.47
Aug 2025	25.03
Jul 2025	25.07
Jun 2025	25.38
May 2025	24.53
Apr 2025	22.58
Mar 2025	23.14
Feb 2025	24.03
Jan 2025	24.43
Dec 2024	24.62
Nov 2024	26.79
Oct 2024	24.96
Sep 2024	25.71
Aug 2024	24.90
Jul 2024	24.25
Jun 2024	22.88
May 2024	23.12
Apr 2024	22.79
Mar 2024	24
Feb 2024	23.01
Jan 2024	21.51
Dec 2023	20.96
Nov 2023	19.62
Oct 2023	18.08
Sep 2023	18.71
Aug 2023	19.92
Jul 2023	20.38
Jun 2023	19.81
May 2023	17.82
Apr 2023	18.46
Mar 2023	18.20
Feb 2023	18.10
Jan 2023	18.31
Dec 2022	17.46
Nov 2022	18.01
Oct 2022	16.75
Sep 2022	14.86
Aug 2022	16.61
Jul 2022	17.14
Jun 2022	16.52
May 2022	17.86
Apr 2022	18
Mar 2022	21.32
Feb 2022	20.64
Jan 2022	20.87
Dec 2021	23.94
Nov 2021	22.75
Oct 2021	23.63
Sep 2021	22.99
Aug 2021	24.51
Jul 2021	24.29
Jun 2021	25.41
May 2021	26
Apr 2021	25.27
Mar 2021	25.89
Feb 2021	23.79
Jan 2021	22.31
Dec 2020	28.15
Nov 2020	27.84
Oct 2020	24.08
Sep 2020	29.23
Aug 2020	29.48
Jul 2020	27.22
Jun 2020	37.21
May 2020	36.51
Apr 2020	34.73
Mar 2020	36.43
Feb 2020	45.14
Jan 2020	49.94
Dec 2019	36.50
Nov 2019	36.55
Oct 2019	35.10
Sep 2019	27.45
Aug 2019	26.66
Jul 2019	27.47
Jun 2019	20.92
May 2019	19.42
Apr 2019	21.12
Mar 2019	17.69
Feb 2019	17.91
Jan 2019	16.89
Dec 2018	14.80
Nov 2018	16.60
Oct 2018	16.04
Sep 2018	17.88
Aug 2018	17.52
Jul 2018	17.52
Jun 2018	16.16
May 2018	16.74
Apr 2018	16.30
Mar 2018	16.56
Feb 2018	17.03
Jan 2018	17.79
Dec 2017	17.43
Nov 2017	17.12
Oct 2017	16.54
Sep 2017	17.36
Aug 2017	16.72
Jul 2017	16.75
Jun 2017	17.60
May 2017	17.39
Apr 2017	17.19
Mar 2017	18.33
Feb 2017	18.47
Jan 2017	17.86
Dec 2016	18.41
Nov 2016	18.35
Oct 2016	16.92
Sep 2016	17.61
Aug 2016	17.66
Jul 2016	17.57
Jun 2016	17.55
May 2016	17.41
Apr 2016	17.55
Mar 2016	17.72
Feb 2016	16.56
Jan 2016	16
Dec 2015	16.65
Nov 2015	17.03
Oct 2015	16.93
Sep 2015	15.39
Aug 2015	15.70
Jul 2015	16.64
Jun 2015	16.73
May 2015	17.20
Apr 2015	17.19
Mar 2015	17
Feb 2015	17.47
Jan 2015	16.61
Dec 2014	17.44
Nov 2014	17.50
Oct 2014	17.02
Sep 2014	16.83
Aug 2014	17.04
Jul 2014	16.39
Jun 2014	17
May 2014	16.98
Apr 2014	16.70
Mar 2014	16.67
Feb 2014	16.54
Jan 2014	15.98
Dec 2013	16.82
Nov 2013	16.17
Oct 2013	15.65
Sep 2013	15.21
Aug 2013	14.42
Jul 2013	14.83
Jun 2013	14.53
May 2013	14.74
Apr 2013	14.09
Mar 2013	14.43
Feb 2013	14.13
Jan 2013	13.84
Dec 2012	14.11
Nov 2012	13.79
Oct 2012	13.61
Sep 2012	14.17
Aug 2012	13.96
Jul 2012	13.81
Jun 2012	13.81
May 2012	13.34
Apr 2012	14.25
Mar 2012	14.41
Feb 2012	14.24
Jan 2012	13.92
Dec 2011	12.71
Nov 2011	12.59
Oct 2011	12.51
Sep 2011	11.13
Aug 2011	12.29
Jul 2011	13.19
Jun 2011	14.59
May 2011	14.71
Apr 2011	15.17
Mar 2011	15.42
Feb 2011	15.16
Jan 2011	14.86
Dec 2010	14.37
Nov 2010	13.36
Oct 2010	13.26
Sep 2010	13.31
Aug 2010	11.97
Jul 2010	12.91
Jun 2010	12.27
May 2010	12.93
Apr 2010	14.65
Mar 2010	14.72
Feb 2010	13.53
Jan 2010	12.94
Dec 2009	13.92
Nov 2009	13.76
Oct 2009	12.66
Sep 2009	14.64
Aug 2009	13.74
Jul 2009	13.20
Jun 2009	12.78
May 2009	13.09
Apr 2009	12.75
Mar 2009	11.31
Feb 2009	10.36
Jan 2009	12.63

Sector Comparison

The table below shows a comparison of the forward P/E Ratio (24.3) 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 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 Financials	16.05	83.30	Expensive
S&P 500 Energy	15.38	50.80	Fair Value

Definition: Forward P/E Ratio

The forward P/E ratio for S&P 500 Industrials 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.