Data through: October 2026 · updated Nov 1 · Updates: Monthly
MThe three bars show the last 3 months (end-of-month values) for this indicator, oldest left to newest right. Bar height reflects each reading relative to the other two — the tallest is the highest of the three, the shortest the lowest.
Historical context: Currently in the 93rd percentile historically — elevated vs historical norms.
What this means right now: The S&P 500 P/E is between 25x and 35x — expensive by the record. The market has been here in 1894–95, 1921, 1933–34, 1992, 1998–2003, 2008–09, 2020–21 and 2024–26, though in 2008–09 it was a collapse in earnings, not high prices, that put it here. Returns from here have been poor: over the ten years after the 73 such months with a full decade behind them, the S&P 500 returned a median 3.4% a year with dividends, against 8.8% for all months. Nearly a third of those 10-year periods ended with the index lower (23 of the 73).
S&P 500 P/E (TTM) · Monthly · 1871–2026
NBER recessions
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Monthly values
S&P 500 P/E (TTM) — the last 12 months
Every month's reading, with the band the heatmap gives it. The chart above shows the same series in full.
Month
Value
Band
Oct 2026
26.2
Concerning reading
Sep 2026
26.0
Concerning reading
Aug 2026
26.1
Concerning reading
Jul 2026
25.3
Concerning reading
Jun 2026
25.2
Concerning reading
May 2026
26.1
Concerning reading
Month-end readings of the same series as the chart. Values are the current record, not point-in-time: a month that has since been revised shows its revised value.
What is the S&P 500 P/E?
The Price-to-Earnings (P/E) ratio divides the current price of the S&P 500 by the actual earnings per share generated over the past 12 months. It answers a simple question: how much are investors paying for each dollar of corporate earnings? A P/E of 20 means investors are paying $20 for every $1 of earnings — a P/E of 30 means they are paying $30. The higher the P/E, the more expensive the market is relative to current profits.
Over the long run the S&P 500 has traded at about 16x earnings (17.8x since 1928). It has sat above that when investors were optimistic about growth, when low interest rates made stocks the better bargain, or when speculation ran hot. In recessions it has usually been low: in about 3 recession months in 4 (246 of 335) the ratio sat below 15, as it also did in years of high inflation. The exceptions are the recessions that crushed earnings faster than prices, as in 2001–02, 2008–09 and 2020–21, when the ratio spiked to its highest readings. Unlike the Shiller CAPE, which averages 10 years of earnings, the trailing P/E uses only the past 12 months — so it reacts faster to events, but it also swings more.
How We Color-Code the S&P 500 P/E
Our heatmap colors this indicator against historically significant thresholds:
Below 15.0
Cheap — the market's most common state, half of all months since 1871 (49%); last seen in January 2012
15.0 – 20.0
Fair value — neither cheap nor dear; a third of months since 1871 (32%), most recently 2010–14 and 2018–19
20.0 – 25.0
Elevated — pricier than usual, though markets have held here for years at a time; most months from 2014 to 2023
25.0 – 35.0
Expensive — 1894–95, 1921, 1933–34, 1992, 1998–2003, 2008–09, 2020–21 and 2024–26; high prices put the ratio here, but so does a collapse in earnings
Above 35.0
Earnings-collapse territory — reached only when profits fell faster than prices: 2001–02, 2008–09 and 2020–21
Historical Extremes — What Happened Next?
When this indicator reaches extreme levels, history shows consistent patterns:
Mar 2009Financial Crisis Bottom
110.4x
The ratio was sky-high because earnings had collapsed, not because prices had. Over the five years after this reading was published, the S&P 500 returned +143.6% with dividends. The ratio peaked two months later, at 123.7x in May 2009.
Dec 1999Dot-Com Bubble Peak
29.7x
The dot-com peak, though the ratio itself was not at its high: it had read 34.0x in April 1999. Over the three years after this reading was published, the S&P 500 returned −34.5% with dividends. The ratio peaked later, at 46.7x in March 2002, as earnings fell in the bear market.
Dec 2020COVID Earnings Collapse
39.3x
The ratio spiked because earnings collapsed, not because prices ran away: earnings fell by about a third during 2020 while prices recovered. Over the twelve months after this reading was published, the S&P 500 returned +22.2% with dividends. As earnings rebounded, the ratio fell to 23.6x by December 2021.
Frequently Asked Questions
What is a good P/E ratio for the S&P 500?
Over the long run the S&P 500 has averaged approximately 16-17x earnings. By the record, below 15x is cheap; 15-20x is fair value; 20-25x is somewhat elevated; 25x or above is expensive. What counts as "good" also depends on interest rates: when bonds pay little, investors have accepted higher P/E ratios.
Why did the P/E spike during COVID in 2020?
The P/E ratio spiked in 2020 because corporate earnings collapsed due to shutdowns, while stock prices recovered quickly. When earnings fall dramatically, P/E rises automatically even if stock prices stay flat. This is why P/E can be misleading during recessions — it reflects past earnings, not future recovery.
What is the difference between trailing P/E and forward P/E?
Trailing P/E uses the actual earnings from the past 12 months — it is based on real data. Forward P/E uses analyst estimates for the next 12 months — it is based on forecasts. Trailing P/E is more reliable because it uses known data, but forward P/E can be more relevant if earnings are expected to change significantly.
What has followed a high P/E?
Over the next year, about the same as usual; over the next five years, less than usual. From 1928 to September 2026 the trailing P/E ended 142 months at 25x or above (month-end readings, price change only). A year later the S&P 500 was higher after about two-thirds of them (85 of the 130 with a full year by September 2026, 65%), with a median gain of +11.7%. After any month, the figures are 69% and +9.9%. Five years later it was higher after 75 of 110 (68%, through September 2026), with a median gain of +27.6%. After any month, the figures are 80% and +47.0%. High readings can also last for years: the ratio stayed at 25x or above for 68 straight months, from February 1998 to September 2003. Its highest readings, above 35x in 2001–02, 2008–09 and 2020–21, came when earnings collapsed, and the index was higher five years after 27 of the 27 with a full five years since.
How does the P/E ratio relate to interest rates?
When interest rates are low, bonds offer poor returns, making stocks more attractive even at high P/E ratios. When rates rise, bonds compete more effectively with stocks, putting downward pressure on P/E ratios. On the site's data that link held for half a century: from the 1950s to 1981, and again from 1982 to 2007, a higher 10-year Treasury yield went with a lower P/E (a correlation of −0.6 to −0.7 in each period). Since 2008 the link has all but disappeared, with a correlation near zero.