Valuation – 10-Year U.S. Treasury Real Yield vs. S&P 500 Forward Price/Earnings Ratio The S&P 500 P/E tends to fall when real yield increases. Image: Morgan Stanley Wealth Management
Valuation – 12-Month Forward P/E and Equity Risk Premium Despite the rise in the forward 12-month P/E ratio, the equity risk premium is in line with its long-term average. Image: Fidelity Investments
Valuation – S&P 500 Forward PE Ratio The forward P/E ratio of the S&P 500 is 19.77 and remains at high level. The historical range is about 15.5 to 17. Image: Bianco Research
Valuation – S&P 500 Operating Earnings Per Share If companies are able to maintain their profit margins, the forward P/E ratio of the S&P 500 could fall to 20.1x by 4Q22. Image: J.P. Morgan Asset Management
S&P 500 Valuations S&P 500 valuations are elevated, as the Shiller P/E and forward P/E ratios remain at high level. Image: Goldman Sachs Global Investment Research
Is The U.S. Stock Market Overvalued? S&P 500 Valuation: the chart shows that the U.S. stock market is not cheap. Based on the forward P/E ratio, the S&P 500 is not extremely overvalued either. You may also like our “Stock Market Valuation.” Image: Bianco Research