Valuation – S&P 500 Forward P/E vs. P/E Adjusted for Amortized Intangibles The S&P 500’s valuation looks less expensive adjusted for intangibles amortization. Image: BofA Research Investment Committee
Valuation – S&P 500 Median LTM P/E Are U.S. equities expensive? The S&P 500 median trailing P/E remains well above Tech bubble peaks. Image: Deutsche Bank Asset Allocation
Valuation – S&P 500 Sectors LTM P/E Current valuations appear to be high across most sectors of the S&P 500. Are they justified? Image: Deutsche Bank Asset Allocation
Valuation – S&P 500 EV to EBIT Are U.S. equities expensive? The S&P 500’s Enterprise Value to EBIT is still above Tech bubble highs. Image: Deutsche Bank Asset Allocation
Valuation – S&P 500 Normalized P/E Ratio Has the S&P 500 really become expensive? Image: BofA US Equity & Quant Strategy
S&P 500 Index Relative to Historic Valuation Ranges U.S. stock valuations are well above historical ranges. Should investors expect anemic future returns? Image: Real Investment Advice
Small-Caps Valuation – S&P SmallCap 600 Index / S&P 500 Index – 12-Month Forward Price / Earnings Ratio Relative valuations suggest that small-caps could outperform large-caps over the next decade. Image: Morgan Stanley Research
Valuation – U.S. Equity Market Cap to GDP and U.S. Corporate Profits to GDP Is the U.S. stock market expensive? The U.S. equity market capitalization to GDP ratio hits a new all-time high. Image: Goldman Sachs Global Investment Research
S&P 500 Valuation and Buffett Indicator – Inflation-Adjusted Market Capitalization to GDP Ratio The Buffett’s market indicator is at all-time highs. “The four most dangerous words in investing are: this time it’s different.” —John Templeton Image: Real Investment Advice
U.S. Stock Market Valuation – Cape Ratio Is the U.S. stock market expensive today? The CAPE ratio is just the second highest in over 100 years. Image: Real Investment Advice