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S&P 500 CAPE ratio hits levels last seen in the dot-com era
Yahoo Finance says the S&P 500 dividend yield has fallen to a record low 1.04%, underscoring how richly valued the index is relative to earnings and shareholder payouts.
The S&P 500 has entered what Yahoo Finance described as valuation waters last seen during the dot-com bubble, with the Shiller P/E ratio, also called the CAPE ratio, reaching its second-most expensive level in history.
The CAPE ratio gauges the price of the index against average inflation-adjusted earnings over the prior 10 years. Yahoo Finance said the measure is far above levels associated with the Crash of 1929 and only slightly below the peak seen in November 1999.
Yahoo Finance noted the CAPE ratio peaked at about 44.19 in late 1999 and later fell to around 21 by January 2003, even as the index pushes to fresh records.
The outlet also highlighted that the S&P 500 dividend yield has dropped to the lowest level on record, at 1.04%, using its AlphaSpace analysis.
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