Valuation – S&P 500 Index Forward P/E Ratio vs. MSCI World Ex-U.S. Forward P/E Ratio U.S. equities currently trade at roughly a 50% premium over international stocks, fueled by stronger earnings growth, greater profitability, and investors’ willingness to pay extra for these advantages. Image: Bloomberg
Valuation – S&P 500 12-Month Forward P/E Ratio The S&P 500’s forward P/E ratio of 20x places it above historical averages, reinforcing the view that current valuations are not historically cheap. Image: The Daily Shot
Forward P/E Ratio and Subsequent 5-Year Annualized Returns Given current U.S. stock market valuations, investors may need to lower their expectations for equity returns over the next five years. Image: J.P. Morgan Asset Management
Valuation – S&P 500 Forward P/E Ratio vs. 10-Year U.S. Treasury Yield The 10-year U.S. Treasury yield surpassing 4.5% is creating a headwind for equity valuations and potentially dampening investor sentiment. Image: Morgan Stanley Wealth Management
U.S. Tech Valuations – Forward PE Ratio U.S. tech sector’s valuations have surpassed post-COVID highs. However, historical precedent suggests that these high valuations may be challenging to sustain going forward. Image: Morgan Stanley Wealth Management
Valuation – S&P 500 12-Month Forward P/E Ratio and 2-Year U.S. Treasury Yield Historically, rising rates tend to compress S&P 500 valuation multiples. Image: Alpine Macro
Valuations – Forward P/E Ratio and Earnings Volatility The U.S. equity market looks expensive. Should investors worry? Image: Alpine Macro
Value vs. Growth – Forward P/E Ratios Value stocks still look cheap relative to growth stocks, despite the recent strength in value stocks. Image: J.P. Morgan Asset Management
Valuation – S&P 500 Forward P/E Ratio and Subsequent 10-Year Annualized Returns Current S&P 500 valuation suggests anemic returns over the next 10 years. Image: Financial Times
Real Rates vs. S&P 500 Forward P/E Ratio Should investors expect a weak summer for U.S. equities? Image: Nordea and Macrobond
Average Median Forward P/E Ratio for US, UK and Eurozone Stocks vs. S&P 500 Could the S&P 500’s run slow down, as valuations in the U.S. and Europe are lofty? Image: Longview Economics