Investment portfolio p/e ratio of s&p 500?
Basic Info
S&P 500 Dividend Yield | 1.47% |
---|---|
S&P 500 Earnings Yield | 4.30% |
S&P 500 Market Cap | 40.04T USD |
S&P 500 P/E Ratio | 23.27 |
Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio.
S&P 500 PE Ratio with Forward Estimate was 22.44 as of 2024-12-31, according to GuruFocus. Historically, S&P 500 PE Ratio with Forward Estimate reached a record high of 131.39 and a record low of 6.48, the median value is 18.07. Typical value range is from 20.26 to 28.36. The Year-Over-Year growth is -8.79%.
The S&P 600 Index's forward price-to-earnings (P/E) ratio was 12.6 as of November 21, 2023.
The P/E ratio is a classic measure of a stock's value indicating how many years of profits (at the current earnings rate) it takes to recoup an investment in the stock. The current S&P500 10-year P/E Ratio is 32.3.
Thus the percentages on the vertical axis show the over/undervaluation as a percent above mean value, which we're using as a surrogate for fair value. Based on the latest S&P 500 monthly data, the market is overvalued somewhere in the range of 80% to 140%, depending on the indicator, up from last month's 71% to 128%.
The PE ratio for Dow stock stands at 29.44 as of Jan 30, 2024. This is calculated based on the TTM EPS of $1.85 and the stock price of $54.47 per share. An increase of 66% has been observed in the PE ratio compared to its average of 17.8 of the last four quarters.
A P/E of 30 is high by historical stock market standards. This type of valuation is usually placed on only the fastest-growing companies by investors in the company's early stages of growth. Once a company becomes more mature, it will grow more slowly and the P/E tends to decline.
Very low vs very high PE ratios
It is arguable that a PE of five or less is not a remarkable bargain. While it might look as if the company's prospects are being viewed too negatively, it is not a bad rule of thumb to filter out companies with a PE below this level.
What is the forward 12 month PE ratio for the S&P 500?
For CY 2024, analysts are projecting earnings growth of 11.6% and revenue growth of 5.4%. The forward 12-month P/E ratio for the S&P 500 is 20.0.
The correct way to determine an index's P/E ratio is by adding the sum of the share prices of the companies listed and dividing that figure by the sum of their earnings per share.
![Investment portfolio p/e ratio of s&p 500? (2024)](https://i.ytimg.com/vi/rCffaE81bIQ/hq720.jpg?sqp=-oaymwEcCNAFEJQDSFXyq4qpAw4IARUAAIhCGAFwAcABBg==&rs=AOn4CLD8mYXqJ_gjtIFqNJWWdd-J44oGfQ)
: 28.41 (As of Today) View and export this data going back to 1980. Apple's Forward PE Ratio for today is 28.41.
Mike Zaccardi, CFA, CMT 🍖 on X: "The P/E ratio on the S&P 490 is 14.6 https://t.co/v2Bje6VH4n" / X.
The PE ratio for Nasdaq stock stands at 26.05 as of Jan 26, 2024. This is based on the current EPS of $2.25 and the stock price of $58.62 per share.
Investors and analysts consider stocks which have a P/E ratio of 50 or above to be an overvalued share, especially in comparison to a stock which has a ratio at par with or below 10. As it allows investors to determine that its share prices are considerably higher than what a company can afford to pay as dividends.
Returns in the S&P 500 over the coming decade are more likely to be in the 3%-6% range, as multiples and margins are unlikely to expand, leaving sales growth, buybacks, and dividends as the main drivers of appreciation.
The table below lists the current & historical P/E (TTM) ratio, dividend yield & CAPE ratio of the Russell 2000 index. The current P/E ratio of the index is 26.72 (Jan 1st, 2024).
Smart Money Is Buying all-Time Highs - Why You Should, Too
We're heading into the final trading week with the S&P 500 advancing 2.54%, the Nasdaq gaining 2.96%, while the Dow is up 1.11% as of this past Friday's close. The multi-month rally off the 2023 October lows has yet to run its course.
Is now a good time to invest in the S&P 500 2023?
The S&P 500 index has been a winner in 2023. The index on Wednesday closed above 4,700 for the first time since January 2022. Year to date, the index is up about 23%. Its average annual return is more than 10%.
The S&P 500 has soared 25% in 2023 to its current level at about 4,785, which is within 1% of Lee's initial 2023 price target. In fact, his forecast came the closest to predicting the S&P 500 among the strategists tracked by Bloomberg.
The mean historical PE ratio of Pfizer over the last ten years is 17.88. The current 15.51 P/E ratio is 13% lower than the historical average.
Average PE of Nifty in the last 20 years was around 20. * So PEs below 20 may provide good investment opportunities; lower the PE below 20, more attractive the investment potential.
This could let them get in front of a lot more customers very quickly once they start rolling out more electric models. In conclusion, Tesla shares have high valuations based on measures like P/E ratio and price/sales. This mostly results from its strong growth versus traditional automakers like GM and F.
References
- https://groww.in/p/overvalued-stocks
- https://businessmap.io/project-portfolio-management/metrics
- https://www.cnbc.com/2023/12/15/the-sp-500-is-up-over-23percent-year-to-date-what-to-know-before-investing.html
- https://www.investopedia.com/articles/active-trading/083115/who-actually-trades-or-invests-penny-stocks.asp
- https://www.tickertape.in/blog/best-multibagger-stocks/
- https://www.investopedia.com/ask/answers/071415/what-formula-calculating-return-investment-roi-excel.asp
- https://www.fidelity.com/mutual-funds/information/portfolio-manager-appointments
- https://www.bankrate.com/investing/what-are-penny-stocks/
- https://www.investopedia.com/terms/t/treynorratio.asp
- https://www.sisense.com/kpis/financial-kpis/investment-portfolio-performance/
- https://link.springer.com/10.1007%2F978-0-387-26336-6_60
- https://www.blackrock.com/dk/intermediaries/insights/portfolio-solutions/blackrock-portfolio-analysis-and-solutions
- https://www.stash.com/learn/what-is-a-good-pe-ratio/
- https://www.lendenclub.com/blog/penny-stocks-under-rs-5/
- https://www.wallstreetmojo.com/m2-measure/
- https://m.economictimes.com/definition/sharpe-ratio
- https://www.tradestation.com/insights/2023/02/17/tesla-overvalued-comparison-gm-ford-2/
- https://www.samco.in/knowledge-center/articles/best-penny-stocks-to-buy-now-in-india/
- https://bfsfcu.org/learn/resource-measure-the-performance.html
- https://www.investopedia.com/articles/08/performance-measure.asp
- https://www.investopedia.com/ask/answers/05/lowperatiostocksbetterinvestments.asp
- https://www.fidelity.com/products/funds/content/analyze.shtml
- https://markets.businessinsider.com/news/stocks/stock-market-outlook-2024-sp500-forecast-5200-target-tom-lee-2023-12
- https://www.investopedia.com/articles/investing/032516/how-use-benchmark-evaluate-portfolio.asp
- https://www.wallstreetzen.com/blog/what-is-a-good-pe-ratio/
- https://www.tickertape.in/blog/fundamentally-strong-penny-stocks/
- https://www.investopedia.com/articles/investing/031115/5-top-portfolio-management-apps.asp
- https://www.investopedia.com/terms/p/pe-30-ratio.asp
- https://smarts.thestreet.com/all-smarts/how-many-stocks-and-how-much-of-them-should-you-own
- https://www.schwab.com/learn/story/what-is-pe-ratio
- https://www.fool.com/the-ascent/buying-stocks/articles/heres-why-investors-love-the-3-fund-portfolio/
- https://www.investopedia.com/articles/basics/11/due-dilligence-on-dividends.asp
- https://groww.in/blog/financial-ratios-every-investor-should-know
- https://fullratio.com/stocks/nasdaq-amzn/pe-ratio
- https://aliceblueonline.com/best-low-price-shares-to-buy/
- https://www.investopedia.com/articles/fundamental-analysis/10/should-you-trust-pe-ratios.asp
- https://ycharts.com/companies/TSLA/pe_ratio
- https://corporatefinanceinstitute.com/resources/career-map/sell-side/capital-markets/benchmark/
- https://fullratio.com/stocks/nyse-dow/pe-ratio
- https://home.csulb.edu/~pammerma/fin382/screener/buffett4.htm
- https://www.advisorperspectives.com/dshort/updates/2024/01/02/market-valuation-is-the-market-still-overvalued
- https://www.schwab.com/learn/story/five-key-financial-ratios-stock-analysis
- https://twitter.com/MikeZaccardi/status/1565434341768978435
- https://www.investopedia.com/terms/j/jensensmeasure.asp
- https://fullratio.com/stocks/nyse-pfe/pe-ratio
- https://institutional.fidelity.com/advisors/portfolio-construction/tools-and-services/portfolio-quick-check
- https://www.smallcase.com/collections/long-term-stocks-to-buy/
- https://fullratio.com/stocks/nasdaq-ndaq/pe-ratio
- https://www.schwab.com/portfolio-evaluation
- https://www.performancemeasurementsolutions.com/what-is-investment-performance
- https://www.investmentzen.com/blog/what-is-a-good-pe-ratio-for-a-stock
- https://www.pimco.com/gbl/en/resources/education/understanding-benchmarks
- https://www.barrons.com/articles/60-40-portfolio-vanguard-bonds-61168cdd
- https://www.livemint.com/market/stock-market-news/vodafone-idea-suzlon-to-reliance-power-these-10-multibagger-penny-stocks-give-up-to-250-return-in-2023-11703930659873.html
- https://www.trustradius.com/investment-portfolio-management
- https://www.thinkadvisor.com/2023/01/20/does-a-100-stock-portfolio-make-sense/
- https://finance.yahoo.com/news/zacks-investment-ideas-feature-highlights-132700260.html
- https://www.forbes.com/advisor/au/investing/highest-return-on-investments/
- https://www.pimco.co.uk/en-gb/resources/education/understanding-benchmarks
- https://www.wallstreetmojo.com/portfolio-return-formula/
- https://www.smallcase.com/collections/penny-stocks-in-india/
- https://www.5paisa.com/blog/fundamentally-strong-stocks
- https://www.investopedia.com/investing/the-lowdown-on-penny-stocks/
- https://www.troweprice.com/institutional/us/en/insights/articles/2023/q4/how-attractive-are-us-small-cap-stocks-na.html
- https://www.livemint.com/money/personal-finance/how-to-examine-your-mutual-fund-portfolio-and-maximize-returns-11666969976601.html
- https://www.moneycontrol.com/stocks/marketinfo/pe/bse/index.php?indcode=0
- https://corporater.com/solution/investment-portfolio-management-software/
- https://www.ig.com/en/trading-strategies/what-is-a-good-p-e-ratio--181207
- https://www.gurufocus.com/economic_indicators/6061/sp-500-pe-ratio-with-forward-estimate
- https://time.com/personal-finance/article/how-many-stocks-should-i-own/
- https://www.miraeassetmf.co.in/knowledge-center/what-is-pe-ratio
- https://study.com/academy/lesson/portfolio-performance-measures-relevant-benchmarks.html
- https://primexbt.com/for-traders/s-p-500-price-prediction-forecast/
- https://www.cmcmarkets.com/en/trading-guides/the-sharpe-ratio-definition
- https://www.investopedia.com/ask/answers/010815/what-difference-between-sharpe-ratio-and-traynor-ratio.asp
- https://www.investopedia.com/terms/p/pe10ratio.asp
- https://www.quantstart.com/articles/the-6040-benchmark-portfolio/
- https://www.factset.com/earningsinsight
- https://www.investopedia.com/terms/p/price-earningsratio.asp
- https://www.nytimes.com/2024/01/13/business/after-a-rip-roaring-2023-the-markets-are-taking-a-breather.html
- https://www.investopedia.com/ask/answers/061215/how-can-i-calculate-expected-return-my-portfolio.asp
- https://finimize.com/content/what-will-sp-500-return-over-next-10-years
- https://corporatefinanceinstitute.com/resources/wealth-management/risk-adjusted-return-ratios/
- https://www.investopedia.com/top-stocks-for-january-2024-8416518
- https://www.fidelity.com/learning-center/tools-demos/active-trader-pro-platforms/charting-active-trader-pro-video
- https://finance.yahoo.com/u/yahoo-finance/watchlists/most-active-penny-stocks/
- https://www.gurufocus.com/term/forwardPE/AAPL/Forward-PE-Ratio/Apple
- https://www.forbes.com/advisor/investing/roi-return-on-investment/
- https://www.currentmarketvaluation.com/models/price-earnings.php
- https://stockstotrade.com/three-reasons-i-avoid-stocks-under-1/
- https://www.lendenclub.com/blog/multibagger-penny-stocks-for-2024/
- https://www.investopedia.com/ask/answers/041315/what-are-pros-and-cons-using-sp-500-benchmark.asp
- https://www.5paisa.com/share-market-today/penny-stocks
- https://www.investopedia.com/updates/how-to-invest-in-penny-stocks/
- https://ycharts.com/indicators/sp_500_pe_ratio_forward_estimate
- https://www.blackrock.com/us/financial-professionals/insights/60-40-not-dead
- https://www.investopedia.com/articles/basics/06/benchmark.asp
- https://www.screener.in/screens/797657/stock-doubling-every-3-years/
- https://www.fool.com/investing/how-to-invest/stocks/how-many-stocks-should-i-own/
- https://money.usnews.com/investing/articles/best-growth-stocks-for-the-next-ten-years
- https://www.investopedia.com/ask/answers/where-can-i-find-pe-ratios-dow-and-sp-500/
- https://www.linkedin.com/pulse/asset-allocation-key-determinant-portfolio-returns-vinod-bhat-cfa
- https://www.federatedhermes.com/us/resources/resources-for/individual-investors/building-and-maintaining-a-portfolio/evaluating-funds.do?hint=page
- https://siblisresearch.com/data/russell-2000-pe-yield/
- https://belongingwealth.com/asset-allocation-for-retirement/
- https://companiesmarketcap.com/top-companies-by-pe-ratio/
- https://www.quora.com/What-does-it-say-about-a-company-if-it-has-a-P-E-ratio-of-over-200
- https://ycharts.com/indicators/sp_500_pe_ratio
- https://www.investopedia.com/investing/use-pe-ratio-and-peg-to-tell-stocks-future/
- https://www.fool.com/investing/how-to-invest/portfolio-diversification/