S&P 500 Tech and Communication Services Trailing P/E

## What this measures

The trailing P/E of the S&P 500's technology, media and telecom companies taken together: the Information Technology and Communication Services sectors (Apple, Microsoft, Nvidia, Alphabet, Meta and the rest), market value over the last four reported quarters of net income.

## Why it matters

These two sectors are a large share of the index's value, so how richly they are valued drives the market's valuation as a whole.

## How to read it

Read it against the whole S&P 500 P/E, or directly as the premium (equities.sp500.tech_relative_pe).

## What it does not say

It is not a forward P/E: analysts' estimates of next year's earnings are licensed data Palanor does not carry. Earnings are reported GAAP net income, so one-off gains and charges move it. It uses today's S&P 500 members, today's sector of each company and current share counts back in time, so earlier years leave out companies that have since left the index. A day is published only when at least 90% of the companies in each group have both a price and a full year of reported earnings, which is when the history starts.

## 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.