Below is an updated look at P/E ratio (trailing 12 months) charts for the S&P 500 and its 10 sectors. As shown, the S&P 500's P/E ratio has crept up to 14.80 during the current rally, but it's still below the high it reached back in September when the S&P 500 hit its prior bull market high.
Earnings reports will be flooding the market over the next few weeks, so we could see some swings in the S&P's P/E ratio depending on how strong or weak earnings are for the largest stocks in the U.S.
P/E ratios for most sectors have also increased throughout this rally. Telecom has the highest P/E ratio at 21.98, followed by Consumer Discretionary and Consumer Staples. Interestingly, two of the three sectors with the highest P/Es are defensive sectors (Telecom and Consumer Staples).
The Utilities sector also has a high valuation for a defensive sector at 15.44. Sectors like Financials, Industrials, Energy, and even Technology have more attractive valuations than Utilities. While Technology is typically thought of as a high-risk growth sector, it actually has the fifth lowest P/E ratio in the S&P 500.