Here is the latest update for December 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.
Despite the market’s run in December, the median stock’s valuation remained fairly steady
Using the current year PE Ratio, stocks look more expensive.
They also look expensive using the Price/Sales, but nowhere near the peak in 2021.
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