Market Is Not Overvalued, Says Bill Miller

Miller Value Partners founder Bill Miller does not see the market as overvalued, according to a recent CNBC article.

“If you look at the overall market,” Miller said, “we’re trading at around 17 times the consensus on bottom-up earnings for 2021, which is about the average for the last five years. It might be a little extended given we’ve got a chasm of bad news to go over here, but I don’t find it as dramatically overvalued.”

Miller’s comments came in start contrast to those of Appaloosa Management founder David Tepper, who argued that the market is the most overvalued he has seen since 1999, and Stanley Druckenmiller of Duquesne Family Office who reportedly commented that the “risk-reward for equity is maybe as bad as I’ve seen it in my career.”

Miller argues that Amazon stock (which represents his firm’s largest holding) could double in three years due to the company’s effort to “immunize” itself from future pandemics and its strong position in cloud services.