The S&P 500 is currently exhibiting elevated price-to-earnings (P/E) ratios, with the forward 12-month P/E ratio at 21.7, surpassing both the 5-year average of 19.6 and the 10-year average of 18.1. Additionally, the trailing 12-month P/E ratio stands at 27.2, again above the 5-year average of 23.9 and the 10-year average of 21.8. The top 10 stocks in the S&P 500 have a P/E ratio of 30.7, while the remaining stocks average 18.4. Historically, the average P/E ratio for the S&P 500 since 1996 is 16.6. Analysts have noted that the index is considered historically expensive based on various valuation metrics, with current valuations reflecting significant investor optimism, the highest seen since 2000, and approximately 50% above the historical median. This trend raises questions about the sustainability of such high valuations in the current market environment.