S&P 500 P/E ratio has been rising in the past century, S&P 500 PE Ratio and Average Querier

s&P 500

The S&P 500 index represents US stocks

Since the launch of the S&P 500 by Standard & Poor’s, it has gradually been accepteded globally as a representative of the market returns of U.S. stocks market. Therefore, not only in US stocks, the S&P 500 can be said to be the most important market index for the world’s financial market. Welcome to my two previous related articles “S&P 500 index, the only stock worth holding forever” and “A table comparing S&P 500, Nasdaq, Dow Jones, Philadelphia Semiconductor Index over the years since its inception and annualized returns“.

You can use the “Querier to Annualized rate of return for S&P 500 Index” provided on this site to query the historical return rate of the S&P 500 index for each year, as well as the S&P 500 index for any two years

S&P 500 P/E ratio is rising

If you look closely at the average price-to-earnings ratio of the S&P 500 index, which represents the U.S. stock market over the past hundred years, generated by this queryer, you can immediately find (It is recommended that you use your finger to zoom in on the pink trend chart below on your mobile phone, or press the CTRL key and the scroll button on the mouse simultaneously on the computer to zoom in on the chart):

  • The price-earnings ratio valuation of U.S. stocks has a clear and slow upward trend with the years.
  • The average price-to-earnings ratio of the S&P 500 index in the past 100 years is 17.12, but in 2022, even if it is currently in a bear market, the S&P 500 index will be in:
    • The average PE ratio for 09/02/2022 is 19.94
    • The average PE ratio for 01/02/2022 is 23.11

And the numbers for 2021:

  • The average P/E ratio on 6/30/2021 is 45.65
  • The average PE ratio for 01/02/2021 is 35.96

Features of this Querier

S&P 500 PE Ratio and Average Querier provides below features:

  • It can be used to query the average annual price-earnings ratio of the S&P 500 for any two years in the past 100 years.
  • If you enter the same number for starting year and ending year, you can check the annual price-earnings ratio of the S&P 500 for that year.
  • At the bottom, the annual price-earnings ratio chart of the S&P 500 index over the past 100 years will be displayed, and the annual price-earnings ratio of the S&P 500 index of the year can be displayed by sliding the mouse over the small blue circle in the chart.

One thing to note first, the annual price-to-earnings ratios for the S&P 500 that I use are based on the twelve-month average of the S&P 500 for that year.

How to use this querier?

Users simply click on this link to connect to the S&P 500 PE Ratio and Average Querier and see the following screen:

S&P 500 PE Ratio and Average Querier

The user only needs to enter the following two fields on the screen:

  • Starting Year: For example, in the example in the screen, we enter 1922
  • Ending Year: For example, in the example in the screen, we enter 2021

After the input, click the “Calculate” button on the screen, and you can see the querry results in the “Results” area.

Current P/E Ratio

Take December 2022 as an example, about half of the companies have a price-to-earnings ratio of less than 14 times, and even a price-to-earnings ratio of less than 8 times is not uncommon.

Table for stock investment toolset

Here is a list of these must-have tools for investors:

The online tool I developURL for the tool
For detailed function description, please click the description article directly
Annualized rate of return and compound interest
IRR calculatorIRR calculatorIRR calculator
Simple and compound interest calculatorSimple and compound interest calculator Simple and compound interest calculator
Famous market index
Taiwan stock exchangeQuerier to Annualized rate of return for Taiwan Stock Exchange Querier to Annualized rate of return for Taiwan Stock Exchange
Dow Jones Industrial Average (DJIA) IndexQuerier to Annualized rate of return for Dow Jones Industrial Average Index Querier to Annualized rate of return for Dow Jones Industrial Average (DJIA) Index
S&P 500Querier to Annualized rate of return for S&P 500 Index Querier to Annualized rate of return for S&P 500 Index
NasdaqQuerier to Annualized rate of return for Nasdaq Index Querier to Annualized rate of return for Nasdaq Index
Philadelphia Semiconductor Index Querier to Annualized rate of return for Philadelphia Semiconductor Index Querier to Annualized rate of return for Philadelphia Semiconductor Index (SOX)
Important ecnomic data query
US historial GDP querierUS GDP querier US Gross domestic product (GDP) querier
Querier of US Inflation RateQuerier of US Inflation Rate Querier of US Inflation Rate
Valuation
DCF (Discounted Cash Flow) CalculatorDCF (Discounted Cash Flow) Calculator DCF (Discounted Cash Flow) Calculator
S&P 500 historical PE Ratio and average QuerierS&P 500 historical PE Ratio and average Querier S&P 500 P/E ratio has been rising in the past century, S&P 500 PE Ratio and Average Querier
Data share
Data and sample downloadSample and file downloadSample and file download
S&P 500
credit: etmoney

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Disclaimer

  • The content of this site is the author’s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.
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