![]() This measure is used as a benchmark to see if the market value per share is higher or lower, which can be used as the basis for decisions to buy or sell shares. The book value per share is calculated as the aggregate amount of stockholders' equity, divided by the number of shares outstanding. The most common market value ratios are noted below. These ratios are employed by current and potential investors to determine whether a company's shares are over-priced or under-priced. The average P/S ratio for the S&P 500 in 2021 was 4.6.Market value ratios are used to evaluate the current share price of a publicly-held company's stock. S&P 500: Average P/S Ratio by Industry (Fiscal Years 2020-2021) This is consistent with the sector’s average P/E ratio and indicates less investor optimism across the board for these stocks. The average P/S ratio of 3.8 for the financial sector in 2021 is lower than the S&P average (4.6). The average P/S ratio for tech stocks (information technology sector) of 7.2 in 2021 outpaces the other sectors just like with the Price to Earnings ratios, with only the real estate sector seeing a higher average P/S in 2021 of 11.4. The average P/S ratio for the energy sector in 2021 was 1.7, which was lower than its 2020 values and may represent the large selloff that occurred with those stocks during the steep drop in demand in the pandemic. This data was pulled from ’s premium plugin which pulls from publicly available company filings, and adjusted to ignore high numbers that would greatly skew the average, with any values above 20 being deleted. The average P/S ratio of the S&P 500 was 4.6 in 2021, and 3.9 in 2020.īelow is the breakdown for each S&P 500 sector for Fiscal Years 20: S&P 500 Sector S&P 500: Average P/S Ratio by Sector (Fiscal Years 2020-2021) The link for a screenshot of the entire 20 year dataset from Fiscal Years 2002 – 2021: Average P/E Ratio of the S&P 500 by Industry. ![]() Technology Hardware, Storage & PeripheralsĪgain, this data was pulled from ’s premium plugin which pulls from publicly available company filings, and adjusted to ignore high and low numbers that would greatly skew the average, with any values above 250 or below -250 being deleted. Independent Power and Renewable Electricity Producers The following is a breakdown of the average P/E ratio of the S&P 500 by industry: S&P 500 IndustryĮlectronic Equipment, Instruments & ComponentsĮquity Real Estate Investment Trusts (REITs) The average P/E ratio for the S&P 500 in 2021 was 23.5. S&P 500: Average P/E Ratio by Industry (Fiscal Years 2020-2021) Median P/E’s are arguably a better measure of the overall index because it takes the middle point of the group, which roughly shows where the P/E for each company is closer to statistically. The tables below display the historical median P/E ratio for the S&P 500 by sector over the last 20 years, from Fiscal Years 2003-2021: S&P 500 Sector ![]() ![]() The average P/E ratio for the energy sector in 2021 was 10.9, which is on the lower end of its historical average (on median terms), likely due to the great inflow of earnings for those businesses following a rebound from the pandemic in demand for oil and gas. ![]() All values represent current S&P 500 constituents and do not account for previous companies that have been dropped from the index. This data was pulled from ’s premium plugin which pulls from publicly available company filings, and adjusted to ignore high and low numbers that would greatly skew the average, with any values above 250 or below -250 being deleted.ĭue to the differing months for fiscal year period reporting schedules with all companies, each year’s figures may not fully represent the actual fiscal year displayed. Source: Company filings and estimates from Sather Research LLC. Here’s the breakdown for each S&P 500 sector for Fiscal Years 20: S&P 500 Sector ![]()
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