U.S. Consumer Confidence in Higher Stock Prices vs. S&P 500 Trailing Valuations As optimism about future stock performance builds, valuations rise, with investors betting on sustained growth and paying more now for potential profits ahead. Image: Real Investment Advice
Valuation – Software Forward P/E Software valuations have come under heavy pressure, with the forward P/E multiple sliding to 20 times, a level investors haven’t seen since 2014. Image: Goldman Sachs Global Investment Research
S&P 500 Sector P/E Valuations Relative to History Markets show no sign of fatigue, with investors keeping S&P 500 valuations stretched well beyond historical levels. Image: Goldman Sachs Global Investment Research
Valuation – 12-Month Forward P/E Ranges (MSCI Regions) With growth steady and earnings resilient, markets look set to push higher this year. The trouble is, valuations are already rich, leaving little room for error. Image: Goldman Sachs Global Investment Research
Valuation Ranges of MSCI World Styles Indices Across markets and styles, valuations remain lofty amid AI-driven optimism and market concentration, forcing investors to pick their spots carefully. Image: Goldman Sachs Global Investment Research
U.S. Equity Index P/E Valuations vs. History U.S. equities aren’t exactly a bargain at 22 times forward earnings for the S&P 500 and 27 for the Nasdaq 100, but investors keep buying as long as the earnings trend stays intact. Image: Goldman Sachs Global Investment Research
U.S. Dollar Index (DXY) and Purchasing Power Parity Valuation Despite recent softness, the U.S. dollar still trades at a hefty premium on key valuation measures, making it vulnerable to further losses. Image: TS Lombard
U.S. Equity Valuation Metrics (Z-Score Since 1900) U.S. equity valuations are still lofty, with major gauges more than two standard deviations above century-long norms. Cheap is not the word that comes to mind. Image: The Daily Shot
U.S. Equity Index Valuations vs. History The S&P SmallCap 600’s forward P/E of 16x looks attractive by historical standards, while the S&P 500’s 22x forward multiple, sitting in the 94th percentile, paints a very different picture on valuation. Image: Goldman Sachs Global Investment Research
Valuation – Mega-Cap Tech PEG Ratio Despite relying on forward growth estimates that often move, the Mega-Cap Tech PEG ratio (P/E to CY3 EPS growth) has fallen sharply, echoing the lows of 2022. Image: Goldman Sachs Global Investment Research
Deviation of Earnings Above-Below Long Term Growth Trend vs. Valuations When earnings drift too far from their long-term growth trend, markets tend to close the gap painfully. The gap widening today points to risks still under the radar. Image: Real Investment Advice