Marketwatch: The view from a high plateau
US equity valuations are currently around 23 times forward earnings. This price-to-earnings (P/E) ratio is substantially higher than the historical average of 17 times and ranks in the 95th percentile since 1990.
Professor Robert Shiller maintains a database of historical valuations. He prefers to use real 10-year averages to smooth earnings over a business cycle. This method shows cyclically adjusted valuations at an even more extended 38 times earnings, compared to a long run average of 18 times, or 98th percentile. For a more complete summary of the story, please see the below link:
Published on: Sep 26, 2025 03:09 PM