Below is a chart of the trailing 12-month P/E ratio for the S&P 500. As shown, the current P/E ratio for the S&P stands at 15.68. This is the lowest level since mid-July 2009. Since then, the S&P 500 is up 20%, so earnings are up 20% since then as well. At the market's peak in late April, the S&P 500's P/E ratio was at 17.69, so it has dropped about 2 points since then. Valuations have dropped the most for Materials, Financials, Energy, and Technology since the April peak.
Going back to the March 9th, 2009 low, the Consumer Discretionary sector has seen the smallest rise in its P/E ratio (15.03 to 15.56). Back then it had the second highest valuation behind the Financial sector, which had a negative P/E ratio at the time. Consumer Discretionary now has the lowest valuation of the cyclical sectors, and earnings in the sector have risen significantly along with share prices.
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