Browse Stacks: Trading: Stocks: Valuations-Table-072221.png (564×376)

Valuations-Table-072221.png (564×376)

Stock valuations exceed levels rarely witnessed in history.

Comments

RNeoRNeo
Can we get a 1000% reading soon? Valuations no longer matter! 7/25/21
The Vulcan Sloper akaGrinThe Vulcan Sloper akaGrin
"Valuations"? - lol 7/25/21
RNeoRNeo
Just realised these are based on Nov 2020 numbers. By now they must be 200%+ 
 
Some updates from Crescat Cap: https://www.crescat.capital/june-performance-estimates/ 
S&P 500 Price Target: 2,903 
At the current inflation rate of 5%, the target earnings yield for the S&P 500 is 6.6% based on the historical regression of earnings yield and CPI. This equates to a P/E of 15.2, far from its 3.3% earnings yield and 30.3 P/E today. To arrive at our S&P 500 destination price, apply the target 15.2 multiple to Wall Street analysts’ current calendar year 2021 EPS estimates of $191, and voilà, Crescat’s current valuation-based target for the S&P 500 is 2,903. This compares to today’s all-time high price of 4,370 for the same index. This is not sensationalism, but macro realism based on history, economic data, current fundamentals, and math. Keep in mind that it is a moving target based on these same factors. 7/25/21
MyopiaMyopia
Data like this always lags 12-18 months. That makes it fairly useless. As a stop gap, you can arbitrarily reduce the net percentage by the presumed economic baseline growth during the period in question — 12%-13% — but even with that calculation it’s simply an educated guess; there’s no exactitude to be had. 7/27/21
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