Search Results for: P/E ratio

Valuation – Forward P/E Ratio From the valuation peak of January 2018, most P/E ratios have seen drawdowns of 20%-30%, making this feel like a bear market. Image: Fidelity Investments

U.S. Yield Curve and Growth/Value P/E Ratio The chart below shows that the shape of yield curve explains nearly 50% of the variation in value vs. growth multiples. Actually, when the U.S. economy is sluggish, investors prefer growth stocks. Image: BlackRock, Inc.

S&P 500 Valuation – Forward P/E Ratio – May 10, 2019 S&P 500 Valuation: Forward P/E Ratio is 16.5 and equal to the 5-year average, above the 10-Year average (14.7).Based on the forward P/E ratio, the US stock market is not too expensive. You may also like our “Stock Market Valuation.” Image: FactSet Research Systems Inc.

S&P 500 Trailing Price-to-Earnings Ratio vs. Real Fed Funds Rate Great chart showing the S&P 500 12-month trailing P/E ratio vs. the real Fed funds rate (R² = 0.79). Image: Stifel

U.S. Market – Earnings, Valuation and Equity Risk Premium This chart shows that the P/E ratio is above average, but the equity risk premium is relatively high. Image: Fidelity Investments

Is The U.S. Stock Market Overvalued? S&P 500 Valuation: the chart shows that the U.S. stock market is not cheap. Based on the forward P/E ratio, the S&P 500 is not extremely overvalued either. You may also like our “Stock Market Valuation.” Image: Bianco Research