As the S&P 500 continues to hit fresh milestones with a first-ever break above the 5,000 level, its valuation is reaching new heights as well. The S&P 500's forward price-to-earnings ratio a commonly used metric to value stocks this week rose to 20.4 times, a level last reached in February 2022, according to LSEG Datastream. It isn’t unusual for valuations to climb along with stock prices, and equities can stay expensive for a long time before returning to more moderate levels.
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