Re:Stock Markets Tumble Amid Worries Over Tech Firms and Tra...
by mdorazio on Monday April 02, 2018 @10:21PM
(#16741393)
To clarify what I think you mean, the P/E ratio is rising and is now above historical averages for the S&P 500 dataset. The only times in the past where this was true was in the bubble days of the late 90s and mid 2000s. The takeaway is that stock prices are not actually supported by the underlying earnings gains, even if earnings are going up - this is evidence of an overheated market.
But the multiple is rising, meaning prices have grown _faster_ than the price.
http://www.multpl.com/