BTC$79,663.46-1.78%
ETH$2,451.77-1.90%
BNB$718.60-0.61%
LTC$50.77-0.94%
ADA$0.2101-4.89%
XRP$1.39-4.08%
LINK$11.62-1.63%
DOGE$0.0845-3.37%
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POL$0.0927-1.37%BTC$79,663.46-1.78%ETH$2,451.77-1.90%BNB$718.60-0.61%LTC$50.77-0.94%ADA$0.2101-4.89%XRP$1.39-4.08%LINK$11.62-1.63%DOGE$0.0845-3.37%SOL$101.67-2.33%POL$0.0927-1.37%The S&P 500 has been getting a lot of attention lately, and it made me wonder how everyone here looks at the current valuation. Do you mainly look at the S&P 500 P/E ratio, earnings growth, interest rates, or historical valuations when deciding whether the index looks expensive? I'd be interested to hear whether people think the market can keep moving higher even when valuations look elevated.
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I look at the forward P/E mostly and right now it is elevated but not insane given the earnings growth rate. When companies are genuinely growing earnings at 23 percent annually like the current consensus projects, paying a premium multiple is not irrational. The dot-com bubble had high P/E with no earnings to back it up. This time the earnings are actually there, at least for now.
Maria· Aug 26The concentration is what bothers me more than the headline P/E. The index looks reasonable until you realize a handful of AI-related names are doing most of the heavy lifting. Bank of America flagged this specifically, comparing the tech concentration to dot-com levels. If Nvidia disappoints on August 26 you will see very quickly how much of the S&P 500's valuation depends on one supply chain.