Can US equity valuations be justified?
Filed in: Economy |Investment
17 December 2024
The above chart provides a comprehensive snapshot of US stock market valuations, examining how current stock prices relate to company earnings across different market sectors.
At first glance, stocks appear expensive, trading at 19.1x earnings (meaning investors are paying $19.10 for every $1 of company earnings).
However, this number tells a more nuanced story than simply being an indicator of overvaluation.