Which sectors are overvalued? Current vs 10-year historical P/E for all 11 sectors.
Data as of March 9, 2026 · Source: Finviz, Multpl.com, S&P Global
10 of 11 sectors trade above their 10-year average P/E. Only Real Estate trades below its historical norm (-12%), pressured by elevated interest rates.
Communication Services is the most stretched at 89% above its 10-year average (37.47 vs 19.8), driven by Alphabet and Meta's dominance and AI-era re-rating.
Financials offer the lowest absolute P/E (16.92) and the second-best growth-adjusted value (PEG 1.44). Technology has the best PEG at 1.34 despite its elevated P/E.
Consumer Staples has the worst PEG ratio (2.95) — investors pay a steep safety premium for single-digit earnings growth. The defensive trade is expensive.
Materials are the stealth performer. Best 1-year return (+45%), lowest PEG alongside Tech (1.40), and forward P/E of just 14.9. Commodity supercycle tailwinds are real.
| Sector | P/E | Fwd P/E | 10yr Avg | vs Avg | PEG | EPS 5yr | Fwd EPS | Mkt Cap | Weight | YTD |
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This study analyzes the price-to-earnings ratios of all 11 GICS (Global Industry Classification Standard) sectors as represented in the U.S. equity market.
P/E ratios for different sectors are not directly comparable. Capital-intensive sectors (Utilities, Real Estate) traditionally trade at different multiples than asset-light sectors (Technology, Communication Services). This study provides both absolute and relative-to-history comparisons.
Data refreshed: March 9, 2026.