S&P 500 Historical PE Ratio By Year
Data updated: May 2024
S&P PE Ratio Definition
The S&P PE Ratio is the share adjusted earnings divided by price of each companies that composes the SP500 Index (P/E = PE Ratio). Higher ratios indicate higher valuations, whereas lower ratios indicates investors are willing to pay less per $1 of earnings.
For Example:
A company with a PE ratio of 7 means a company that produces $1 Million in annual earnings is valued at $7M dollars by the market ($7M/$1M = 7).
The Historical PE Ratio graph illustrates the historical valuations the S&P companies have experienced. Factors that impact the S&P P/E Ratio includes Federal interest rates, economic growth, and productivity.
Calculation Methodology
Trailing 12 month earnings are used. For the latest PE data point where corporate earnings aren't announced, an estimated consensus earning is used until actuals become available.
Earnings data are inflation adjusted 2024 dollars