S&P 500 Valuation Metrics

S&P 500 Valuation Metrics Valuation metrics suggest that the S&P 500 is experiencing high valuations, with multiple indicators pointing to an overvaluation. Image: BofA US Equity & Quant Strategy

CAPE Valuations and Deviation from Exponential Growth Trend

CAPE Valuations and Deviation from Exponential Growth Trend Previous peaks, characterized by deviations in price from the long-term exponential growth trend, offer valuable insights into the market’s valuation and potential future trends. Image: Real Investment Advice

Valuation – 12-Month Forward P/E Ranges (MSCI Regions)

Valuation – 12-Month Forward P/E Ranges (MSCI Regions) The divergence between current U.S. stock market valuations and historical averages has sparked worries among investors about long-term viability and potential market downturns. Image: Goldman Sachs Global Investment Research

S&P 500 Valuation – Shiller’s Cyclically-Adjusted Price-To-Earnings (CAPE) Ratio

S&P 500 Valuation – Shiller’s Cyclically-Adjusted Price-To-Earnings (CAPE) Ratio The Shiller CAPE ratio is elevated relative to history. While valuation is not a reliable timing tool, investors should be mindful of the potential for lower future returns when valuations remain high for an extended period. Image: Morgan Stanley Research

Valuation – S&P 500 12-Month Forward P/E

Valuation – S&P 500 12-Month Forward P/E With a forward P/E of 21, the S&P 500’s current valuation is in the 90th percentile compared to the past 100 years. While high valuations may not immediately affect stock prices, they can impact them when market conditions shift. Image: Morgan Stanley Wealth Management

Valuation – MSCI World 12-Month Forward P/E

Valuation – MSCI World 12-Month Forward PE Compared to the 20-year median, the current global stock market valuation appears relatively high, with a 12-month forward P/E ratio of 17.8. Image: Goldman Sachs Global Investment Research

Valuation – S&P 500 Long-Term P/E Ratio

Valuation – S&P 500 Long-Term P/E Ratio Valuation, particularly in the context of the S&P 500 long-term P/E ratio, remains a significant consideration for investors. The high current ratio suggests a potential overvaluation. Image: The Daily Shot

S&P 500 Valuation – Real Market Capitalization to Real GDP Ratio

S&P 500 Valuation – Real Market Capitalization to Real GDP Ratio The inflation-adjusted market capitalization to GDP ratio is a valuable tool to evaluate the U.S. stock market’s valuation. The high current ratio implies a potential overvaluation. Image: Real Investment Advice

Valuation – S&P 500 Next-Twelve-Month P/E Ratio

Valuation – S&P 500 Next-Twelve-Month P/E Ratio The S&P 500 NTM P/E ratio is currently at a high level of 20.9, indicating that investors are willing to pay a relatively high price for each dollar of expected earnings in the next twelve months. Image: Goldman Sachs Global Investment Research