The S&P 500 Tech sector's price/sales ratio hits a new all-time high. Tech's P/E ratio is at its highest level in the last 10 years, resembling the 2000 peak with more stocks having higher P/Es. The S&P 500 trades at 21.3x forward earnings, 30% above the 20-year mean. The US technology sector's forward PE nears pre-pandemic levels and surpasses trailing PE levels. The ratio of Semiconductors to the S&P 500 reaches its highest level since July 2000.
Ratio of Semiconductors to the S&P 500 at its highest level since July 2000. https://t.co/1lGAUPYAQU
On a forward PE basis, the US technology sector is approaching levels last seen right before the pandemic. On a trailing PE basis, it has already surpassed it. https://t.co/9BHXt0mWkG
The S&P 500 currently trades at 21.3x forward earnings. This is ~30% above the 20Y mean. https://t.co/y4AgbpKYRY
'If we look at the distribution of P/Es across the S&P 500 Index, today's market is similar to the 2000 peak, except that the current distribution has a fatter right tail, i.e. there are more stocks with P/Es higher than the average.' https://t.co/YDxyhGUmsl https://t.co/0vqgryeqwC
Here's a look at how current sector P/E ratios compare to readings over the last 10 years. Tech's P/E is at its highest level of the last 10 years. Health Care is in the 99th %-tile, while Financials is in the 92nd %-tile. Utilities and Energy are both below the 20th %-tile. https://t.co/CeNEeJmaJx
New all-time high for S&P 500 Tech sector’s price/sales ratio https://t.co/lfIj19suC4