S&P 500 Information Technology Forward PE Ratio

The S&P 500 Information Technology currently trades at a forward P/E ratio of 30.61 as of October 24, 2025.

Over the past five years, the median forward P/E has been 28.52, putting today's valuation in the 76.7th percentile of that range. Looking at the longer 10-year period, where the median sits at 24.13, the current reading ranks in the 88.3th percentile - a level historically associated with Expensive pricing.

Since July 2009, the S&P 500 Information Technology has recorded a median forward P/E ratio of 18.59 over 16 years. Against this full historical backdrop, the current valuation sits in the 92.9th 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 (30.61) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	29.05	75	Overvalued
5 Year	28.52	76.7	Overvalued
10 Year	24.13	88.3	Expensive
Since Jul 2009	18.59	92.9	Expensive

Trailing P/E for S&P 500 Information Technology

Returns vs P/E Ratio

Over the past decade, the PE rose from 15.6 (43.6th percentile) to 30.61 (88.3th percentile). Annualized total return over this period was 22.9%. 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	36.36	95.5	+28.2%	+28.2%
3 Year	22.2	69	+162.1%	+37.9%
5 Year	25.58	84.5	+177.5%	+22.6%
10 Year	15.59	43.6	+684.5%	+22.9%

Historical Data (2009-2025)

Date	Forward PE Ratio
Oct 2025	30.61
Sep 2025	31.19
Aug 2025	29.09
Jul 2025	29.01
Jun 2025	29.52
May 2025	26.90
Apr 2025	24.28
Mar 2025	25.92
Feb 2025	28.45
Jan 2025	28.85
Dec 2024	31.85
Nov 2024	31.50
Oct 2024	30.13
Sep 2024	33.39
Aug 2024	32.59
Jul 2024	32.21
Jun 2024	35.33
May 2024	32.33
Apr 2024	29.40
Mar 2024	32.28
Feb 2024	31.67
Jan 2024	29.82
Dec 2023	30.42
Nov 2023	29.31
Oct 2023	26
Sep 2023	26.55
Aug 2023	28.52
Jul 2023	28.94
Jun 2023	28.96
May 2023	27.18
Apr 2023	24.87
Mar 2023	26.28
Feb 2023	23.70
Jan 2023	23.64
Dec 2022	23.31
Nov 2022	25.46
Oct 2022	24.05
Sep 2022	23.37
Aug 2022	26.57
Jul 2022	28.34
Jun 2022	25.59
May 2022	28.23
Apr 2022	28.52
Mar 2022	30.84
Feb 2022	29.82
Jan 2022	31.39
Dec 2021	32.22
Nov 2021	31.18
Oct 2021	29.92
Sep 2021	27.11
Aug 2021	28.79
Jul 2021	27.83
Jun 2021	26.56
May 2021	24.85
Apr 2021	25.11
Mar 2021	24.78
Feb 2021	24.38
Jan 2021	24.12
Dec 2020	25.52
Nov 2020	24.15
Oct 2020	21.71
Sep 2020	24.92
Aug 2020	26.35
Jul 2020	23.56
Jun 2020	24.53
May 2020	22.91
Apr 2020	21.44
Mar 2020	20.74
Feb 2020	22.72
Jan 2020	24.54
Dec 2019	25.37
Nov 2019	24.30
Oct 2019	23.11
Sep 2019	22.61
Aug 2019	22.29
Jul 2019	22.67
Jun 2019	21.61
May 2019	19.81
Apr 2019	21.75
Mar 2019	20.52
Feb 2019	19.59
Jan 2019	18.38
Dec 2018	17.47
Nov 2018	19.10
Oct 2018	19.51
Sep 2018	20.74
Aug 2018	20.82
Jul 2018	19.50
Jun 2018	19.39
May 2018	19.46
Apr 2018	18.17
Mar 2018	17.81
Feb 2018	18.54
Jan 2018	18.56
Dec 2017	17.22
Nov 2017	17.22
Oct 2017	17.06
Sep 2017	17.05
Aug 2017	16.95
Jul 2017	16.41
Jun 2017	16.81
May 2017	17.29
Apr 2017	16.60
Mar 2017	17.81
Feb 2017	17.37
Jan 2017	16.56
Dec 2016	17.55
Nov 2016	17.29
Oct 2016	17.39
Sep 2016	18.62
Aug 2016	18.19
Jul 2016	17.86
Jun 2016	17.61
May 2016	18.12
Apr 2016	17.21
Mar 2016	19.29
Feb 2016	17.68
Jan 2016	17.96
Dec 2015	19.64
Nov 2015	20.11
Oct 2015	19.99
Sep 2015	18.19
Aug 2015	18.38
Jul 2015	19.51
Jun 2015	18.66
May 2015	19.51
Apr 2015	19.12
Mar 2015	18.14
Feb 2015	18.78
Jan 2015	17.40
Dec 2014	17.83
Nov 2014	18.14
Oct 2014	17.28
Sep 2014	17.14
Aug 2014	17.27
Jul 2014	16.66
Jun 2014	16.58
May 2014	16.21
Apr 2014	15.66
Mar 2014	16.02
Feb 2014	15.99
Jan 2014	15.32
Dec 2013	16.52
Nov 2013	15.87
Oct 2013	15.31
Sep 2013	14.90
Aug 2013	14.49
Jul 2013	14.62
Jun 2013	14.47
May 2013	15.02
Apr 2013	14.41
Mar 2013	14.31
Feb 2013	13.97
Jan 2013	13.91
Dec 2012	13.91
Nov 2012	13.92
Oct 2012	13.82
Sep 2012	15.37
Aug 2012	15.19
Jul 2012	14.50
Jun 2012	14.08
May 2012	13.68
Apr 2012	14.84
Mar 2012	15.10
Feb 2012	14.38
Jan 2012	13.41
Dec 2011	12.51
Nov 2011	12.62
Oct 2011	12.87
Sep 2011	11.40
Aug 2011	11.80
Jul 2011	12.57
Jun 2011	12.55
May 2011	12.89
Apr 2011	13.13
Mar 2011	13.20
Feb 2011	13.56
Jan 2011	13.32
Dec 2010	13.36
Nov 2010	12.70
Oct 2010	12.94
Sep 2010	12.41
Aug 2010	11.07
Jul 2010	11.93
Jun 2010	11.76
May 2010	12.54
Apr 2010	13.67
Mar 2010	14.27
Feb 2010	13.37
Jan 2010	12.85
Dec 2009	14.86
Nov 2009	14.08
Oct 2009	13.41
Sep 2009	14.76
Aug 2009	14.13
Jul 2009	13.80

Sector Comparison

The table below shows a comparison of the forward P/E Ratio (30.61) 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 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 Information Technology 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.