Financial Sector P/E Ratio Jumps; Stays Below Historical Average

As shown below, the P/E ratio of the Financial sector has shot up since fourth quarter earnings season began as earnings have been coming in flat and even negative.

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We decided to take the P/E back a little further to see where the current ratio of 15.59 compares with historical levels. As shown, while the spike is significant, it's still below the historical average since 1995. Usually, spikes in P/E are due to a rise in the price instead of a decline in earnings however.