S&P 500 Valuation – Blended P/E Ratio and Equity Risk Premium

S&P 500 Valuation – Blended P/E Ratio and Equity Risk Premium Should investors take a cautious approach to U.S. equities as the S&P 500’s P/E ratio remains elevated? Are investors compensated enough for the risk of owning U.S. equities rather than bonds? Image: Topdown Charts

S&P 500 Valuation vs. History

S&P 500 Valuation vs. History S&P 500 valuation metrics remain elevated by historical standards. Image: Goldman Sachs Global Investment Research

Estimated S&P 500 Valuation Depending on Election Outcome

Estimated S&P 500 Valuation Depending on Election Outcome According to Goldman Sachs, a Democratic sweep could lift the S&P 500 Index to 3400 in the near-term, and to 3800 in mid-2021. Image: Goldman Sachs Global Investment Research

S&P 500 Valuation Dispersion on Forward P/E

S&P 500 Valuation Dispersion on Forward P/E When valuation dispersion was this high, value stocks tended to outperform growth stocks. Image: BofA US Equity & Quant Strategy

S&P 500 Valuations

S&P 500 Valuations S&P 500 valuations are elevated, as the Shiller P/E and forward P/E ratios remain at high level. Image: Goldman Sachs Global Investment Research