Valuation Terminal View
Equity Valuation
The technology sector priced on its own, without the consumer and communications names that ride along inside the Nasdaq-100.
Core print
Current reading
Info Tech is at 21.02×, near the bottom of its own five-year range (10th percentile). That is 19.9% below its five-year median of 26.26×. Over the past twelve months the multiple has compressed by 8.53 points. A multiple is only readable next to what moved it: check whether estimates are rising or falling before calling this expansion or growth.
Interactive chart
Info Tech trades at a blended forward 12-month P/E of 21.02× as of August 22, 2026, an earnings yield of 4.76%. Change from the previous session: −0.05. That is the 10th percentile of the trailing five years. Against every observation since 1998 it is the 56th percentile, across 7,323 daily readings. Recorded once a day and kept permanently — consensus estimates carry no vintages, so this history cannot be rebuilt after the fact.
A cleaner sector cut than the Nasdaq-100, which is an exchange listing rather than an industry. Comparing the two is informative in itself: when technology trades at a premium to the Nasdaq-100, the non-technology members of that index are being valued more conservatively, and when it trades at a discount the reverse holds. The gap between them is often a better signal than either level alone.
Each index is priced as a whole rather than as an average of its members: every constituent contributes its own expected earnings and its own market value, and the index multiple is the ratio of the two, weighted the way the index itself weights them. Expected earnings blend the next two fiscal years in proportion to how much of the coming twelve months falls in each, so the number does not jump when a company rolls its fiscal year. Companies that report in a currency other than the dollar are converted before aggregation, not after.
Values through the launch date come from a terminal-data archive of daily closes; every value after it is computed on this site from consensus earnings estimates and the tracking ETF’s published weights. The two agree to within 1% on the overlap for the S&P 500, Nasdaq-100 and technology.
Information Technology Forward P/E: 21.02× (4.76% Earnings yield), As of August 22, 2026.
One is an industry, the other is a listing venue. The Nasdaq-100 is simply the largest non-financial companies listed on one exchange, which sweeps in consumer and communications names that are not technology businesses at all. This series holds only the technology sector. The spread between the two therefore prices the non-technology part of the Nasdaq-100 — and that spread is often a better signal than either level alone.
It divides the current price by the profit a company or index is expected to earn over a future period, rather than the profit it has already reported. A blended forward 12-month P/E uses the next twelve months specifically, drawing on both of the next two fiscal years in proportion.
Prices reflect what investors expect, not what already happened. A trailing multiple can look cheap at the top of an earnings cycle and expensive at the bottom, because the denominator is describing a period the market has already moved past.
Because the denominator moves too. In deeply cyclical sectors the multiple is lowest when earnings are at their peak — which is usually late in a cycle, not early. Semiconductors are the clearest case of this inversion.
It is the P/E turned upside down — expected earnings divided by price, expressed as a percentage. It stays meaningful when earnings approach zero, where the P/E ratio runs away to infinity, and it can be compared directly against a bond yield.
Once every day. Each reading is kept permanently, which is what turns a current number into a history.