Valuation – S&P 500 Forward P/E Ratio

Valuation – S&P 500 Forward P/E Ratio Considering their attractive valuations, is it time for U.S. equity investors to favor small-caps and mid-caps in their portfolios? Image: Goldman Sachs Global Investment Research

Forward 12-Month P/E Ratio for S&P 500

Valuation – Forward 12-Month P/E Ratio for the S&P 500 Index When valuations remain high for an extended period, investors should be mindful of the potential for lower future returns. Image: Morgan Stanley Wealth Management

Valuation – Shiller CAPE P/E Ratio

Valuation – Shiller CAPE P/E Ratio The CAPE ratio can stay high for extended periods without a market correction, but historical data indicates that it is usually followed by lower future returns. Image: Topdown Charts

S&P 500 Valuations – Combined P/E Ratio and Equity Risk Premium

S&P 500 Valuations – Combined P/E Ratio and Equity Risk Premium Given the S&P 500’s high P/E ratio, should investors be cautious about U.S. equities? And do they receive adequate compensation for the risk associated with owning U.S. equities rather than bonds? Image: Topdown Charts

Valuation – Distribution of Sector FY2 P/E Ratios Relative to S&P 500

Valuation – Distribution of Sector FY2 P/E Ratios Relative to S&P 500 The energy sector’s discount to the S&P 500 suggests potential investment opportunities for those who believe in the energy sector’s long-term growth prospects. Image: Goldman Sachs Global Investment Research

Valuation – S&P 500 Normalized P/E Ratio

Valuation – S&P 500 Normalized P/E Ratio At 22x, the S&P 500 is currently trading over 40% above the long-term average, which suggests that investors are willing to pay a premium for stocks in the index. Image: BofA US Equity & Quant Strategy

Valuation – S&P 500 NTM P/E Ratio

Valuation – S&P 500 NTM P/E Ratio The NTM P/E ratio of the S&P 500, excluding the 7 largest stocks, is at a relatively reasonable level of 17x. Image: Goldman Sachs Global Investment Research