Tech Sector Valuation Back To Historical Lows

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.

Comments

[mkreisel:]

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.

2008 Feb 08 12:38 PM

[whatajoke:]

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?

2008 Feb 08 03:37 PM

[Bespoke Bul...:]

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

2008 Feb 08 04:52 PM

[User 110989:]

Is this trailing or forward PE

2008 Feb 11 11:50 AM