The S&P 500 P/E ratio is 30.4x as of Jun 2026. The S&P 500 index is at 7,572 points.
Valuation is above historical average. The 20-year average P/E for the S&P 500 is approximately 19.5x.
Historical P/E ratios for the S&P 500 index with data going back to 1997, showing market valuation across different economic cycles.
The S&P 500 Price-to-Earnings ratio measures the aggregate valuation of the 500 largest US companies. It divides the index price by trailing 12-month earnings per share.
At 30.4x, the S&P 500 is above historical average. The 20-year average is around 19.5x. Valuations above 25x have historically been associated with periods of elevated market optimism.
Common complementary metrics include the Shiller CAPE ratio (cyclically adjusted P/E), dividend yield, earnings growth rate, and the equity risk premium relative to bond yields.
Popular ETFs include SPY (SPDR S&P 500 ETF), VOO (Vanguard S&P 500 ETF), and IVV (iShares Core S&P 500 ETF). These are among the most liquid ETFs in the world.
Index investing offers broad diversification, lower fees, and transparent holdings. Over long periods, most actively managed funds underperform their benchmark index after fees.
Click any stock to see what 10,000 invested 10 years ago would be worth today.