S&P 500 Real Estate Forward PE Ratio

The S&P 500 Real Estate currently trades at a forward P/E ratio of 34.87 as of October 24, 2025.

Over the past five years, the median forward P/E has been 35.73, putting today's valuation in the 38.3th percentile of that range. Looking at the longer 10-year period, where the median sits at 34.3, the current reading ranks close to the median - a level historically associated with Fair Value pricing.

Since February 2009, the S&P 500 Real Estate has recorded a median forward P/E ratio of 35.91 over 17 years. Against this full historical backdrop, the current valuation sits close to the median of all recorded readings, indicating that the market is trading in line with its long-term median.

Historical P/E Comparison

The table below compares the forward P/E Ratio (34.87) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	36.49	8.3	Attractive
5 Year	35.73	38.3	Undervalued
10 Year	34.3	55	Fair Value
Since Feb 2009	35.91	42.8	Fair Value

Trailing P/E for S&P 500 Real Estate

Returns vs P/E Ratio

Over the past decade, the PE fell from 36 (45.2th percentile) to 34.87 (55th percentile). Annualized total return over this period was 3.1%. Percentile rank indicates position within the historical distribution. At fair value, outcomes have historically varied; near-term paths can be mixed while longer-horizon returns tend to cluster around historical averages.

Time Period	Starting PE Ratio	Starting Percentile	Total Return	Annualized Return
1 Year	38.59	67.2	-3.5%	-3.5%
3 Year	32.16	22.3	+22.7%	+7.1%
5 Year	47.37	86.9	+21.6%	+4%
10 Year	35.99	45.2	+36.2%	+3.1%

Historical Data (2009-2025)

Date	Forward PE Ratio
Oct 2025	34.87
Sep 2025	35.96
Aug 2025	36.01
Jul 2025	35.30
Jun 2025	36.40
May 2025	36.58
Apr 2025	36.27
Mar 2025	38.52
Feb 2025	39.71
Jan 2025	38.15
Dec 2024	38.06
Nov 2024	41.89
Oct 2024	40.29
Sep 2024	41.71
Aug 2024	40.59
Jul 2024	38.42
Jun 2024	36.08
May 2024	35.61
Apr 2024	33.93
Mar 2024	36.25
Feb 2024	35.85
Jan 2024	34.99
Dec 2023	37.53
Nov 2023	34.76
Oct 2023	30.96
Sep 2023	31.56
Aug 2023	34.24
Jul 2023	35.35
Jun 2023	33.87
May 2023	32.31
Apr 2023	33.88
Mar 2023	34.35
Feb 2023	35.08
Jan 2023	37.34
Dec 2022	35.91
Nov 2022	37.99
Oct 2022	35.58
Sep 2022	32.43
Aug 2022	37.55
Jul 2022	39.83
Jun 2022	36.87
May 2022	39.85
Apr 2022	42
Mar 2022	40.46
Feb 2022	37.72
Jan 2022	39.74
Dec 2021	37.54
Nov 2021	34.21
Oct 2021	34.54
Sep 2021	32.88
Aug 2021	35.22
Jul 2021	34.29
Jun 2021	31.92
May 2021	31.06
Apr 2021	30.73
Mar 2021	30.41
Feb 2021	28.59
Jan 2021	28.19
Dec 2020	31.47
Nov 2020	31.18
Oct 2020	29.20
Sep 2020	35.45
Aug 2020	36.36
Jul 2020	36.40
Jun 2020	41.75
May 2020	41.35
Apr 2020	40.64
Mar 2020	36.04
Feb 2020	42.60
Jan 2020	45.58
Dec 2019	43.01
Nov 2019	42.67
Oct 2019	43.52
Sep 2019	38.49
Aug 2019	38.31
Jul 2019	36.62
Jun 2019	31.12
May 2019	30.74
Apr 2019	30.46
Mar 2019	31.60
Feb 2019	30.25
Jan 2019	30
Dec 2018	26.94
Nov 2018	29.26
Oct 2018	27.78
Sep 2018	28.39
Aug 2018	29.32
Jul 2018	28.68
Jun 2018	31.40
May 2018	30.23
Apr 2018	29.64
Mar 2018	29.59
Feb 2018	28.65
Jan 2018	30.80
Dec 2017	33.50
Nov 2017	33.84
Oct 2017	32.96
Sep 2017	33.40
Aug 2017	34.04
Jul 2017	33.74
Jun 2017	34.31
May 2017	33.83
Apr 2017	33.68
Mar 2017	34.41
Feb 2017	34.93
Jan 2017	33.45
Dec 2016	31
Nov 2016	29.87
Oct 2016	30.90
Sep 2016	33.17
Aug 2016	33.78
Jul 2016	35.12
Jun 2016	32.93
May 2016	31.09
Apr 2016	30.69
Mar 2016	26.38
Feb 2016	23.95
Jan 2016	24.27
Dec 2015	27.38
Nov 2015	26.94
Oct 2015	27.20
Sep 2015	26.17
Aug 2015	25.71
Jul 2015	27.19
Jun 2015	26.43
May 2015	27.72
Apr 2015	27.90
Mar 2015	34.96
Feb 2015	34.86
Jan 2015	35.96
Dec 2014	30.03
Nov 2014	29.90
Oct 2014	28.96
Sep 2014	26.79
Aug 2014	28.31
Jul 2014	27.42
Jun 2014	28.28
May 2014	28.30
Apr 2014	27.47
Mar 2014	29.41
Feb 2014	29.34
Jan 2014	28.29
Dec 2013	35.56
Nov 2013	35.22
Oct 2013	37.07
Sep 2013	40.34
Aug 2013	39.09
Jul 2013	41.68
Jun 2013	45.15
May 2013	46.40
Apr 2013	49.52
Mar 2013	47.45
Feb 2013	46.55
Jan 2013	46.29
Dec 2012	46.30
Nov 2012	44.80
Oct 2012	45.13
Sep 2012	44.44
Aug 2012	45.02
Jul 2012	45.41
Jun 2012	48.22
May 2012	45.69
Apr 2012	47.85
Mar 2012	44.76
Feb 2012	42.76
Jan 2012	43.50
Dec 2011	41
Nov 2011	39.43
Oct 2011	41.29
Sep 2011	36.94
Aug 2011	41.36
Jul 2011	43.93
Jun 2011	43.83
May 2011	45.08
Apr 2011	44.82
Mar 2011	52.03
Feb 2011	52.65
Jan 2011	50.39
Dec 2010	74.31
Nov 2010	70.76
Oct 2010	71.58
Sep 2010	72.17
Aug 2010	69.78
Jul 2010	70.46
Jun 2010	70.34
May 2010	74.19
Apr 2010	78.49
Mar 2010	76.80
Feb 2010	69.31
Jan 2010	65.68
Dec 2009	67.34
Nov 2009	63.49
Oct 2009	59.07
Sep 2009	78.48
Aug 2009	73.16
Jul 2009	65.84
Jun 2009	97.67
May 2009	103.04
Apr 2009	100.28
Mar 2009	49.38
Feb 2009	48.38

Sector Comparison

The table below shows a comparison of the forward P/E Ratio (34.87) 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 Information Technology	30.61	88.30	Expensive
S&P 500 Materials	19.05	54.20	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 Real Estate 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.