Updated May 7, 2021
The P/E ratio is a classic measure of any security’s value, indicating how many years of profits (at the current rate) it takes to recoup an investment in the stock. The current S&P500 10-year P/E Ratio is 37.7.
This is 91% above the modern-era market average of 19.6, putting the current P/E 2.3 standard deviations above the modern-era average.
This suggests that the Stock Market is Strongly Overvalued!