Wednesday, April 27, 2022

Average P/E ratio is closer to historical average

The bad news:  the stock markets have been falling all this year, and now are in bear territory.

The good news: the stock markets are no longer overvalued.

The S&P 500 index average P/E ratio is down to 24.9, down from a clearly overvalued 42.7 last year.  The forward estimate (based on estimate earnings) is even lower, at 19.35, which is closer to the long-term historical average (around 15 to 16).

https://www.wsj.com/market-data/stocks/peyields


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