S&P 500 Materials PE Ratio

The S&P 500 Materials currently trades at a current P/E ratio of 26.32 as of October 24, 2025.

Over the past five years, the median P/E has been 18.64, putting today's valuation in the 96.7th percentile of that range. Looking at the longer 10-year period, where the median sits at 17.14, the current reading ranks in the 98.3th percentile - a level historically associated with Expensive pricing. The 20-year median of 15.36 provides additional context, with the current ratio at the highest level of that extended timeframe.

Since July 1996, the S&P 500 Materials has recorded a median P/E ratio of 15.78 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 (26.32) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	24.56	83.3	Expensive
5 Year	18.64	96.7	Expensive
10 Year	17.14	98.3	Expensive
20 Year	15.36	99.2	Expensive
Since Jul 1996	15.78	99.4	Expensive

Forward P/E for S&P 500 Materials

Returns vs P/E Ratio

Over the past decade, the PE rose from 13.3 (21.7th percentile) to 26.32 (98.3th percentile). Annualized total return over this period was 7.2%. 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	23.76	92.6	-6.8%	-6.8%
3 Year	12.84	12.5	+24.2%	+7.5%
5 Year	18.92	81.3	+35.1%	+6.2%
10 Year	13.3	21.7	+100.1%	+7.2%

Historical Data (1996-2025)

Date	Current PE Ratio
Oct 2025	26.32
Sep 2025	26.58
Aug 2025	26.72
Jul 2025	24.44
Jun 2025	24.47
May 2025	24.45
Apr 2025	26.25
Mar 2025	25.04
Feb 2025	24.64
Jan 2025	24.29
Dec 2024	23.50
Nov 2024	24.08
Oct 2024	23.76
Sep 2024	25.90
Aug 2024	26.28
Jul 2024	24.26
Jun 2024	24.18
May 2024	23.08
Apr 2024	24.43
Mar 2024	24.31
Feb 2024	22.13
Jan 2024	20.49
Dec 2023	20.79
Nov 2023	18.01
Oct 2023	17.14
Sep 2023	18.02
Aug 2023	18.54
Jul 2023	18.42
Jun 2023	16.20
May 2023	15.59
Apr 2023	15.47
Mar 2023	14.89
Feb 2023	16.90
Jan 2023	15.51
Dec 2022	16.31
Nov 2022	14.54
Oct 2022	12.84
Sep 2022	13.66
Aug 2022	13.66
Jul 2022	12.34
Jun 2022	12.72
May 2022	13.27
Apr 2022	14.70
Mar 2022	14.87
Feb 2022	15.62
Jan 2022	16.41
Dec 2021	15.81
Nov 2021	15.48
Oct 2021	15.79
Sep 2021	16.23
Aug 2021	16.63
Jul 2021	17.19
Jun 2021	17.19
May 2021	18.75
Apr 2021	19.23
Mar 2021	19.56
Feb 2021	19.56
Jan 2021	20.07
Dec 2020	20.48
Nov 2020	19.99
Oct 2020	18.92
Sep 2020	21.40
Aug 2020	21.72
Jul 2020	20.83
Jun 2020	20.83
May 2020	20.42
Apr 2020	19.39
Mar 2020	17.40
Feb 2020	17.40
Jan 2020	17.69
Dec 2019	17.28
Nov 2019	17.28
Oct 2019	16.18
Sep 2019	16.18
Aug 2019	16.85
Jul 2019	16.45
Jun 2019	15.21
May 2019	15.21
Apr 2019	16.39
Mar 2019	15.23
Feb 2019	14.07
Jan 2019	13.25
Dec 2018	13.25
Nov 2018	14.46
Oct 2018	13.22
Sep 2018	14.95
Aug 2018	15.01
Jul 2018	15.01
Jun 2018	15.68
May 2018	15.36
Apr 2018	15.36
Mar 2018	16.23
Feb 2018	16.71
Jan 2018	18.77
Dec 2017	17.90
Nov 2017	17.90
Oct 2017	18.14
Sep 2017	18.14
Aug 2017	17.54
Jul 2017	17.53
Jun 2017	17.15
May 2017	17.15
Apr 2017	17.46
Mar 2017	17.65
Feb 2017	17.65
Jan 2017	16.97
Dec 2016	16.97
Nov 2016	16.53
Oct 2016	16.08
Sep 2016	16.08
Aug 2016	16.56
Jul 2016	15.90
Jun 2016	16.40
May 2016	17.09
Apr 2016	17.09
Mar 2016	16.40
Feb 2016	15.25
Jan 2016	13.66
Dec 2015	14.84
Nov 2015	14.84
Oct 2015	13.30
Sep 2015	13.30
Aug 2015	13.71
Jul 2015	15.25
Jun 2015	15.77
May 2015	16.65
Apr 2015	16.53
Mar 2015	16.66
Feb 2015	17.58
Jan 2015	15.29
Dec 2014	15.54
Nov 2014	15.54
Oct 2014	14.67
Sep 2014	16.10
Aug 2014	16.10
Jul 2014	16.44
Jun 2014	16.28
May 2014	16.28
Apr 2014	16.28
Mar 2014	16.28
Feb 2014	15.25
Jan 2014	15.77
Dec 2013	15.36
Nov 2013	14.70
Oct 2013	14.70
Sep 2013	14.72
Aug 2013	14.31
Jul 2013	14.31
Jun 2013	13.46
May 2013	12.67
Apr 2013	12.67
Mar 2013	13.19
Feb 2013	13.19
Jan 2013	12.75
Dec 2012	12.21
Nov 2012	12.40
Oct 2012	12.40
Sep 2012	12.22
Aug 2012	11.73
Jul 2012	11.73
Jun 2012	11.29
May 2012	11.29
Apr 2012	11.99
Mar 2012	12.58
Feb 2012	12.58
Jan 2012	10.81
Dec 2011	10.81
Nov 2011	10.30
Oct 2011	9.52
Sep 2011	9.52
Aug 2011	10.52
Jul 2011	12.14
Jun 2011	11.67
May 2011	12.36
Apr 2011	12.52
Mar 2011	13.70
Feb 2011	13.70
Jan 2011	13.80
Dec 2010	13.80
Nov 2010	13.80
Oct 2010	13.38
Sep 2010	13.38
Aug 2010	12.83
Jul 2010	12.16
Jun 2010	12.16
May 2010	15
Apr 2010	15
Mar 2010	15
Feb 2010	15
Jan 2010	17.23
Dec 2009	17.23
Nov 2009	16.79
Oct 2009	18.57
Sep 2009	19.59
Aug 2009	18.81
Jul 2009	21.36
Jun 2009	21.36
May 2009	21.36
Apr 2009	20.25
Mar 2009	15.33
Feb 2009	15.33
Jan 2009	13.26
Dec 2008	8.31
Nov 2008	8.31
Oct 2008	8.31
Sep 2008	10
Aug 2008	11.79
Jul 2008	12.60
Jun 2008	13.71
May 2008	14.77
Apr 2008	14.35
Mar 2008	13.79
Feb 2008	14.27
Jan 2008	14.93
Dec 2007	14.49
Nov 2007	14.02
Oct 2007	14.44
Sep 2007	13.32
Aug 2007	13.32
Jul 2007	15.29
Jun 2007	15.35
May 2007	15.05
Apr 2007	15.05
Mar 2007	14.79
Feb 2007	13.76
Jan 2007	13.76
Dec 2006	13.45
Nov 2006	13
Oct 2006	12.49
Sep 2006	12.19
Aug 2006	12.19
Jul 2006	12.11
Jun 2006	12.11
May 2006	13.04
Apr 2006	14.66
Mar 2006	14.50
Feb 2006	14.50
Jan 2006	14.50
Dec 2005	14.23
Nov 2005	13.67
Oct 2005	13.38
Sep 2005	13.38
Aug 2005	13.27
Jul 2005	13.27
Jun 2005	13.27
May 2005	13.64
Apr 2005	13.64
Mar 2005	14.61
Feb 2005	14.66
Jan 2005	14.92
Dec 2004	14.92
Nov 2004	14.42
Oct 2004	14.42
Sep 2004	14.42
Aug 2004	14.72
Jul 2004	15.20
Jun 2004	15.18
May 2004	15.64
Apr 2004	17.08
Mar 2004	18.98
Feb 2004	18.98
Jan 2004	19.33
Dec 2003	19.33
Nov 2003	19.33
Oct 2003	19.46
Sep 2003	19.46
Aug 2003	19.27
Jul 2003	19.21
Jun 2003	19.21
May 2003	17.93
Apr 2003	17.93
Mar 2003	17.61
Feb 2003	17.40
Jan 2003	17.40
Dec 2002	16.63
Nov 2002	15.63
Oct 2002	15.15
Sep 2002	15.55
Aug 2002	16.24
Jul 2002	18
Jun 2002	18.95
May 2002	20.95
Apr 2002	21.94
Mar 2002	22.51
Feb 2002	22.10
Jan 2002	21.02
Dec 2001	21.93
Nov 2001	21.48
Oct 2001	17.86
Sep 2001	17.86
Aug 2001	18.85
Jul 2001	18.85
Jun 2001	20.15
May 2001	20.15
Apr 2001	18.53
Mar 2001	15.99
Feb 2001	15.36
Jan 2001	13.68
Dec 2000	12.41
Nov 2000	10.85
Oct 2000	10.69
Sep 2000	11.08
Aug 2000	11.08
Jul 2000	12.41
Jun 2000	12.41
May 2000	12.41
Apr 2000	12.41
Mar 2000	14.35
Feb 2000	14.35
Jan 2000	15.88
Dec 1999	17.05
Nov 1999	17.05
Oct 1999	17.51
Sep 1999	20.13
Aug 1999	20.13
Jul 1999	21.16
Jun 1999	22.41
May 1999	22.41
Apr 1999	21.53
Mar 1999	19.76
Feb 1999	18.78
Jan 1999	18.35
Dec 1998	18.63
Nov 1998	17.78
Oct 1998	16.70
Sep 1998	16.40
Aug 1998	16.83
Jul 1998	17.92
Jun 1998	18.99
May 1998	6.22
Apr 1998	18.66
Mar 1998	18.11
Feb 1998	16.13
Jan 1998	15.03
Dec 1997	15.80
Nov 1997	16.29
Oct 1997	16.69
Sep 1997	17.52
Aug 1997	6.22
Jul 1997	17.43
Jun 1997	17.43
May 1997	16.99
Apr 1997	16.44
Mar 1997	16.44
Feb 1997	16.12
Jan 1997	15.65
Dec 1996	15.07
Nov 1996	15.15
Oct 1996	14.78
Sep 1996	14.78
Aug 1996	14.35
Jul 1996	14.07

Sector Comparison

The table below shows a comparison of the current P/E Ratio (26.32) 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 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 Materials 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.