Market Valuation Monitor

US stock market valuation models

Is the US stock market overvalued? Six price-based measures — the Buffett Indicator, Shiller CAPE, price/sales, mean reversion, the interest-rate model and the earnings yield gap — each compared with its own history in standard deviations.

Composite valuation

Composite since 1962, monthly

Composite (σ)±1σ / ±2σ bands
Month-end readings; last point updates with each trading day

Where every model stands

Expected returns

Expected real S&P 500 return per year, dividends included, implied by today's composite reading. Pick a horizon.

Composite vs return over the next 10 years

Weights and each model's correlation with future returns
How the weights were chosen, and the caveats