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
U.S. Stock Market – 9/11 as Analog to Coronavirus This chart compares 9/11 to coronavirus. It shows the P/E ratio as a percentile, and EPS. Image: Fidelity Investments
Average S&P 500 1-Year Performance Based on Valuation Starting Point The S&P 500 P/E ratio is over 18x currently. As valuations rise, expected returns fall. Image: Richardson Wealth
U.S. Market – Earnings, Valuation and Equity Risk Premium This chart shows that the P/E ratio is above average, but the equity risk premium is relatively high. Image: Fidelity Investments
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