Chart o’ the Day: PE Ratio by Sector

The US stock market (S&P 500) is now selling at a 15.25 trailing 12 months price-to-earnings ratio (PE).  This is up from 13.5 last summer, percentage-wise a pretty good jump. This obviously is a function of the receding fears of tail risk as forward earnings and revenue estimates themselves haven’t moved much.

Bespoke Investment Group breaks this market PE ratio down by sector, shows us where the cheapest stocks are by this admittedly backward-looking metric. Turns out they’re to be found within the banks and energy sectors.

The utilities and telecom sectors, trading at 16 and then 23 times earnings respectively, are expensive and a major historical anomaly. They’ve been awarded these multiples based on the relative scarcity of companies in these sectors and their higher-than-average dividend yields in an atmosphere of income-chasing. When rates go higher these stocks will shock their conservative holders to the downside.

Click to Embiggen!

pe top

pe ratios by sector
pebottom

Source:

P/E Ratios Creeping Higher (Bespoke)

What's been said:

Discussions found on the web
  1. bitcoin era review commented on Sep 22

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]

  2. Immediate Edge Review commented on Sep 22

    … [Trackback]

    […] There you will find 23002 more Information to that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]

  3. Tallahassee Real Estate commented on Sep 25

    … [Trackback]

    […] Read More Info here to that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]

  4. bitcoin evolution review commented on Sep 29

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]

  5. immediate edge review commented on Sep 29

    … [Trackback]

    […] There you will find 35436 more Information on that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]

  6. cum se curata commented on Oct 30

    … [Trackback]

    […] Find More here on that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]

  7. Regression testing approach commented on Nov 25

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]

  8. 바카라사이트 commented on Nov 29

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]

  9. 고군분투 토토사이트 commented on Dec 22

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]

  10. Engineering commented on Jan 06

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]

  11. Software testing services company commented on Jan 16

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2013/03/12/chart-o-the-day-pe-ratio-by-sector/ […]