S&P 500 Valuation – The Shiller CAPE Since 1881 The S&P 500’s CAPE ratio has climbed to levels seen only in the market’s priciest episodes, when the next decade typically delivered negative real returns. History says this time is unlikely to be an exception. Image: Real Investment Advice
U.S. Equity Index P/E Valuations vs. History Risk appetite hasn’t faded. The Russell 2000 trades at 25 times forward earnings, above the Nasdaq 100 at 23 times and the S&P 500 at 20 times. Yes, the market looks pricey, but money keeps flowing into stocks. Image: Goldman Sachs Global Investment Research
S&P 500 Sector P/E Valuations Relative to History Energy still looks like the cheap bet, while Industrials, Healthcare, and Consumer Staples are already priced as if nothing can go wrong. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 NTM P/E The S&P 500 equal-weight index trades at 16 times forward earnings, versus 20 times for the benchmark. It is hardly cheap, but the discount makes it look more attractive. Image: Goldman Sachs Global Investment Research
Valuations – S&P 500 Sector Forward P/E Energy remains the market’s valuation laggard, while Industrials, Healthcare and Consumer Staples are already priced for a lot of optimism. Image: The Daily Shot
S&P 500 CAPE Valuations and 10 Year Annualized Real Return The S&P 500 is trading at a Shiller CAPE ratio seen only during some of the market’s most expensive periods. That kind of optimism can weigh on real returns in the years ahead, creating a difficult backdrop for risk assets. Image: Real Investment Advice
Valuations – 12-Month Forward P/E Ranges (MSCI Regions) U.S. and global stocks still look expensive, but earnings growth is justifying the price tag. As long as the profit trend holds, that premium is more a tax on optimism than a red flag. Image: Goldman Sachs Global Investment Research
U.S. Equity Valuation Metrics (Z-Score Since 1900) U.S. stocks have priced in a lot of good news, with most valuation metrics more than two standard deviations above their historical averages. But momentum could keep the rally going longer than many expect. Image: The Daily Shot
MSCI World Sector/Style Valuations Valuations are rich across sectors and styles, leaving investors with barely any cushion. In this market, even a small shift in sentiment can send prices sliding with little support below. Image: Goldman Sachs Global Investment Research
Valuations – S&P 500 12-Month Fwd P/E Multiple – Top 5 Largest Stocks vs. Other 495 Stocks After nearly a decade of commanding sky-high multiples, the five largest U.S. stocks have lost their valuation premium, with average P/Es barely above the rest of the S&P 500. Image: Goldman Sachs Global Investment Research
Valuation Percentile – Shiller P/E and U.S. 10-Year Yield U.S. equities are trading at stretched valuation percentiles on the Shiller P/E, while the 10‑year Treasury yield sits close to its long‑term average. Image: Goldman Sachs Global Investment Research