Valuations - S&P 500 P/E vs. U.S. ISM Manufacturing Prices Paid (Leading Indicator)

When manufacturing costs climb, equities usually feel it later. Higher input prices work their way into the S&P 500’s P/E ratio with a lag, showing up in valuations roughly a year down the road.

Image: Bloomberg

S&P 500 P/E vs. U.S. ISM Manufacturing Prices Paid (Leading Indicator)