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Tech vs. Defensives: How Richly Each Is Valued
Trailing price-to-earnings ratio of each S&P 500 group relative to the whole index, daily, % above or below
Plays the chart through its history. Pauses are where the data set a record or moved most.
Palanor calculation: Σ market value ÷ Σ net income over the last four reported quarters, for each group and for the whole S&P 500, from SEC filings and licensed closes. Today’s members, sectors and share counts applied to every date, so earlier years leave out companies that have since left the index. Not a forward P/E.
How much more investors pay for a dollar of tech profits than for the market as a whole, against the same measure for the defensive sectors that hold up in recessions. A wide gap means the market is paying up for growth and pricing little risk of a downturn.
What this chart reads
- S&P 500 Tech Valuation Premium to the Indexas “Tech and communication services”latest 2026-10-22
- S&P 500 Defensives Valuation Premium to the Indexas “Staples, utilities and health care”latest 2026-10-22
Sources
S&P 500 Tech Valuation Premium to the Index. Source: Net income from company filings with the SEC (XBRL, public domain). Share prices received through a licensed market data provider. Sectors from the public S&P 500 constituent list (GICS sectors). Ratio computed by Palanor.
S&P 500 Defensives Valuation Premium to the Index. Source: Net income from company filings with the SEC (XBRL, public domain). Share prices received through a licensed market data provider. Sectors from the public S&P 500 constituent list (GICS sectors). Ratio computed by Palanor.
Charts are drawn from Palanor's signal library and recomputed from source data on every view. Transformations (changes, indexing, year-on-year rates) are Palanor's.