S&P 500 CAPE Ratio hits 3rd highest level in history themarketear https://t.co/vmByau9iMS
The S&P 500's recent selloff has mostly been driven by multiple compression ... forward EPS have risen to a new all-time high https://t.co/3drQCn1Gne
SMIDs back under 16x P/E Other 493 near its highest earnings multiple since 2021 https://t.co/wBJvBPIBgt
As of early March 2025, 75% of S&P 500 companies have surpassed earnings per share (EPS) estimates for the fourth quarter, matching the 10-year average but falling short of the 5-year average of 77%. Additionally, 63% of these companies have exceeded revenue estimates, which is below both the 5-year average of 69% and the 10-year average of 64%. The S&P 500 is reporting year-over-year earnings growth of 18.2%, significantly higher than the December 31 estimate of 11.7%. Revenue growth for the same period stands at 5.3%, also above the previous estimate of 4.6%. The forward 12-month price-to-earnings (P/E) ratio for the S&P 500 is currently 21.2, exceeding both the 5-year average of 19.8 and the 10-year average of 18.3. The trailing 12-month P/E ratio is reported at 26.1, again higher than the 5-year average of 24.3 and the 10-year average of 22.1. Recent market analysis indicates that the S&P 500's selloff has largely been influenced by multiple compression, despite forward EPS reaching a record high.
