Here is the latest value spread update for July from Validea’s market valuation tool. Rather than focusing on market-cap weighted indexes like the S&P 500, our tool focuses on the valuation of the average stock relative to history. We use the median of our investable universe of 2700 stocks to perform the calculation. To compare value vs. growth, we look at the top decile of the cheapest stocks and compare it to the top decile of the most expensive stocks.

Relative to growth stocks, value stocks currently sit in the 23rd percentile using the TTM PE Ratio, meaning they have been cheaper 23% of the time historically. This is up from the historical lows we saw in 2023, but remains cheap relative to history.

Using the current year earnings estimate yields similar results.

Using the Price/Sales, value stocks got a little less expensive compared to last month, but look a little more expensive when compared to the earnings-based metrics.