S&P 500 Information Technology PE Ratio

The S&P 500 Information Technology currently trades at a current P/E ratio of 40.44 as of October 24, 2025.

Over the past five years, the median P/E has been 30.52, putting today's valuation in the 98.3th percentile of that range. Looking at the longer 10-year period, where the median sits at 24.08, the current reading ranks among the highest historically - a level historically associated with Expensive pricing. The 20-year median of 17.38 provides additional context, with the current ratio at the highest level of that extended timeframe.

Since March 1996, the S&P 500 Information Technology has recorded a median P/E ratio of 19.6 over 30 years. Against this full historical backdrop, the current valuation sits in the 96.1th 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 (40.44) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	36.66	100	Expensive
5 Year	30.52	98.3	Expensive
10 Year	24.08	99.2	Expensive
20 Year	17.38	99.6	Expensive
Since Mar 1996	19.6	96.1	Expensive

Forward 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 40.44 (99.2th 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 (1996-2025)

Date	Current PE Ratio
Oct 2025	40.44
Sep 2025	38.27
Aug 2025	37.42
Jul 2025	36.08
Jun 2025	34.77
May 2025	34.60
Apr 2025	37.33
Mar 2025	33.65
Feb 2025	35.67
Jan 2025	36.92
Dec 2024	37.34
Nov 2024	36.39
Oct 2024	36.36
Sep 2024	38.79
Aug 2024	40.60
Jul 2024	36.23
Jun 2024	35.01
May 2024	32.46
Apr 2024	32.64
Mar 2024	33.92
Feb 2024	33.52
Jan 2024	33.81
Dec 2023	32.96
Nov 2023	28.93
Oct 2023	28.41
Sep 2023	30.15
Aug 2023	33.53
Jul 2023	33.63
Jun 2023	32.32
May 2023	30.90
Apr 2023	28.86
Mar 2023	28.62
Feb 2023	25.98
Jan 2023	21.90
Dec 2022	23.19
Nov 2022	23.24
Oct 2022	22.20
Sep 2022	24.32
Aug 2022	27.35
Jul 2022	25.23
Jun 2022	25.56
May 2022	26.52
Apr 2022	29.02
Mar 2022	29.25
Feb 2022	30.07
Jan 2022	31.14
Dec 2021	31.71
Nov 2021	30.95
Oct 2021	28.75
Sep 2021	28.26
Aug 2021	28.18
Jul 2021	27.51
Jun 2021	24.47
May 2021	24.47
Apr 2021	23.84
Mar 2021	25.12
Feb 2021	26.75
Jan 2021	26.75
Dec 2020	26.75
Nov 2020	26.24
Oct 2020	25.58
Sep 2020	26.63
Aug 2020	27.94
Jul 2020	24.91
Jun 2020	24.36
May 2020	23.63
Apr 2020	22.25
Mar 2020	17.37
Feb 2020	22.52
Jan 2020	22.52
Dec 2019	21.26
Nov 2019	20.54
Oct 2019	19.77
Sep 2019	19.19
Aug 2019	19.77
Jul 2019	19.77
Jun 2019	17.96
May 2019	17.96
Apr 2019	18.92
Mar 2019	17.89
Feb 2019	17.36
Jan 2019	16.70
Dec 2018	15.71
Nov 2018	16.21
Oct 2018	16.65
Sep 2018	17.13
Aug 2018	18.11
Jul 2018	18.21
Jun 2018	18.21
May 2018	17.55
Apr 2018	17.55
Mar 2018	18.19
Feb 2018	19.29
Jan 2018	19.29
Dec 2017	18.78
Nov 2017	18.78
Oct 2017	18.54
Sep 2017	18.20
Aug 2017	18.20
Jul 2017	18.16
Jun 2017	18.16
May 2017	17.96
Apr 2017	17.96
Mar 2017	16.77
Feb 2017	16.77
Jan 2017	16.77
Dec 2016	16.43
Nov 2016	16.44
Oct 2016	16.54
Sep 2016	16.54
Aug 2016	16.54
Jul 2016	16.54
Jun 2016	15.84
May 2016	15.86
Apr 2016	15.86
Mar 2016	15.45
Feb 2016	14.18
Jan 2016	14.66
Dec 2015	16.24
Nov 2015	16.24
Oct 2015	15.59
Sep 2015	14.77
Aug 2015	14.95
Jul 2015	15.60
Jun 2015	15.93
May 2015	15.93
Apr 2015	15.75
Mar 2015	15.75
Feb 2015	15.44
Jan 2015	15.52
Dec 2014	15.52
Nov 2014	14.21
Oct 2014	14.21
Sep 2014	15.31
Aug 2014	15.31
Jul 2014	15.01
Jun 2014	15.01
May 2014	14.59
Apr 2014	14.68
Mar 2014	14.68
Feb 2014	14.36
Jan 2014	14.36
Dec 2013	13.85
Nov 2013	13.85
Oct 2013	13.05
Sep 2013	12.93
Aug 2013	12.93
Jul 2013	12.72
Jun 2013	12.72
May 2013	12.29
Apr 2013	12.29
Mar 2013	12.05
Feb 2013	11.95
Jan 2013	11.95
Dec 2012	11.11
Nov 2012	11.11
Oct 2012	12.02
Sep 2012	12.02
Aug 2012	11.27
Jul 2012	11.27
Jun 2012	11.36
May 2012	11.36
Apr 2012	12.11
Mar 2012	13.03
Feb 2012	12.12
Jan 2012	11.62
Dec 2011	11.62
Nov 2011	11.38
Oct 2011	11.38
Sep 2011	11.38
Aug 2011	11.73
Jul 2011	11.73
Jun 2011	11.73
May 2011	12.33
Apr 2011	12.44
Mar 2011	12.44
Feb 2011	13.60
Jan 2011	13.47
Dec 2010	13.14
Nov 2010	13.14
Oct 2010	13.14
Sep 2010	12.60
Aug 2010	12.59
Jul 2010	12.59
Jun 2010	12.59
May 2010	13.63
Apr 2010	14.62
Mar 2010	14.24
Feb 2010	14.24
Jan 2010	15.27
Dec 2009	16.12
Nov 2009	15.76
Oct 2009	16.35
Sep 2009	16.35
Aug 2009	16.19
Jul 2009	14.82
Jun 2009	15.51
May 2009	15.51
Apr 2009	14.88
Mar 2009	14.19
Feb 2009	13.43
Jan 2009	12.18
Dec 2008	12.18
Nov 2008	11.12
Oct 2008	12.42
Sep 2008	12.42
Aug 2008	14.71
Jul 2008	14.79
Jun 2008	16.59
May 2008	16.59
Apr 2008	16.14
Mar 2008	15.56
Feb 2008	15.56
Jan 2008	15.91
Dec 2007	16.63
Nov 2007	18.34
Oct 2007	19.87
Sep 2007	18.52
Aug 2007	18.52
Jul 2007	20.25
Jun 2007	19.66
May 2007	19.66
Apr 2007	19.66
Mar 2007	19.04
Feb 2007	19.06
Jan 2007	19.06
Dec 2006	19.38
Nov 2006	19.38
Oct 2006	19.03
Sep 2006	18.52
Aug 2006	17.92
Jul 2006	17.06
Jun 2006	17.39
May 2006	17.90
Apr 2006	19.25
Mar 2006	19.70
Feb 2006	19.55
Jan 2006	19.55
Dec 2005	19.55
Nov 2005	18.92
Oct 2005	18.92
Sep 2005	19.67
Aug 2005	19.67
Jul 2005	19.69
Jun 2005	19.69
May 2005	19.38
Apr 2005	19.38
Mar 2005	19.92
Feb 2005	20.58
Jan 2005	21.14
Dec 2004	22.02
Nov 2004	21.44
Oct 2004	21.44
Sep 2004	20.23
Aug 2004	20.23
Jul 2004	20.58
Jun 2004	21.89
May 2004	22.58
Apr 2004	22.58
Mar 2004	24.27
Feb 2004	25.08
Jan 2004	27.26
Dec 2003	26.72
Nov 2003	28.42
Oct 2003	28.42
Sep 2003	27.94
Aug 2003	26.26
Jul 2003	27.83
Jun 2003	27.83
May 2003	26.84
Apr 2003	25.73
Mar 2003	25.44
Feb 2003	25.44
Jan 2003	26.46
Dec 2002	27.32
Nov 2002	27.32
Oct 2002	25.76
Sep 2002	23.95
Aug 2002	24.70
Jul 2002	26.33
Jun 2002	27.91
May 2002	29.66
Apr 2002	34.83
Mar 2002	36.70
Feb 2002	38.13
Jan 2002	40.20
Dec 2001	45.60
Nov 2001	47.13
Oct 2001	45.01
Sep 2001	34.64
Aug 2001	37.15
Jul 2001	36.48
Jun 2001	35.15
May 2001	35.15
Apr 2001	30.63
Mar 2001	26.46
Feb 2001	30.49
Jan 2001	31.08
Dec 2000	31.08
Nov 2000	32.56
Oct 2000	33.21
Sep 2000	34.02
Aug 2000	40.97
Jul 2000	43.24
Jun 2000	42.58
May 2000	42.58
Apr 2000	43.81
Mar 2000	44.53
Feb 2000	47.46
Jan 2000	45.49
Dec 1999	45.49
Nov 1999	42.71
Oct 1999	38.11
Sep 1999	37.14
Aug 1999	38.85
Jul 1999	38.85
Jun 1999	35.60
May 1999	34.45
Apr 1999	33.94
Mar 1999	33.32
Feb 1999	32.54
Jan 1999	33.95
Dec 1998	29.76
Nov 1998	28.53
Oct 1998	23.44
Sep 1998	25.62
Aug 1998	27.22
Jul 1998	29.34
Jun 1998	25.92
May 1998	26.33
Apr 1998	25.30
Mar 1998	24.71
Feb 1998	23.32
Jan 1998	20.37
Dec 1997	20.19
Nov 1997	20.75
Oct 1997	22.47
Sep 1997	23.07
Aug 1997	23.07
Jul 1997	23.07
Jun 1997	21.37
May 1997	18.98
Apr 1997	17.08
Mar 1997	17.62
Feb 1997	18.24
Jan 1997	19.01
Dec 1996	18.80
Nov 1996	18.15
Oct 1996	17.61
Sep 1996	16.97
Aug 1996	16.33
Jul 1996	15.51
Jun 1996	16.40
May 1996	16.40
Apr 1996	15.03
Mar 1996	15.03

Sector Comparison

The table below shows a comparison of the current P/E Ratio (40.44) 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 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 Information Technology 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.