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As shown in the historical chart of the S&P 500 Technology sector, its P/E ratio has now moved back to 15-year lows. With the sector moving lower in price and earnings continuing to show strength this quarter, Tech's P/E ratio has dropped to 21.63. The sector's P/E was at these same levels in late 1995 and the middle of 2006.

This article has 4 comments:

  •  
    Feb 08 12:38 PM
    1995's tech valuation is hardly at historical low.

    Why is there no earlier data? I'm sure the valuation for tech looked a lot lower in 1990, 1988, and 1982.
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  •  
    Feb 08 03:37 PM
    agreed, another worthless column from these guys. There is no precedent for tech stocks in an environment of DECLINING HOME PRICES, so why bother to even point this out?
    Reply | Link to Comment
  •  
    Feb 08 04:52 PM
    Agreed. Looking at the last 13-15 years is hardly "historical"... This idea that because the PE ratios are at the same levels as in 1995, the stocks must be undervalued is just plain wrong. What about the other variables? Are they the same as 1995? Uggghhhh
    Reply | Link to Comment
  •  
    Feb 11 11:50 AM
    Is this trailing or forward PE
    Reply | Link to Comment
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