Are US Stocks in a Valuation Bubble? | Presented by CME Group
Bloomberg Televisionยท2025-07-15 14:34
Heading into earnings season, a price to earnings or PE ratio of 22 suggest stocks are priced at 22 times their annual earnings, which is historically high. For context, the S&P 500 long-term average PE is around 15 to 16 with peaks near 25 to 30 during past bubbles such as the dot era. A PE of 22 is elevated but not extreme by historical standards.Elevated pees could signal overvaluation if driven by speculative fervor or concentrated in a few stocks, especially if earnings falter or rates rise. Conversely ...