S&P 500 Forward P/E Falls to 17.7, Below Its 10-Year Average
As seen on the 24/7 Wall St. homepage on November 11, 2026.
Anyone calling this market expensive is working off stale math: the index now trades below its 10-year average multiple because 2026 earnings estimates climbed 34% while prices added just 7%.
The S&P 500's forward 12-Month P/E ratio has moved down to 17.7, the lowest level since Nov 2023. -5-Year Avg: 19.8 -10-Year Avg: 19.1 -15-Year Avg: 17.6 What's driving this? In 2026, earnings estimates (+34%) haven risen much faster than prices (+7%). (Note: data as of Nov 5) https://t.co/HX3EjDMKwa
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The S&P 500's forward 12-month price-to-earnings ratio stood at 17.7 as of November 5, its lowest reading since November 2023. That puts the index below its 10-year average.
Earnings estimates for 2026 climbed 34%, far outpacing price gains and pulling the valuation multiple down sharply. When earnings grow that much faster than prices, the math on "expensive" changes in a hurry.
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For investors who have been sitting on the sidelines citing stretched valuations, this data point shifts the conversation. The index now trades at a multiple that is cheaper than it has been for the better part of three years on a forward earnings basis.
What matters going forward is whether those 2026 earnings estimates hold. The cushion narrows quickly if analysts begin cutting forecasts, making earnings revisions the key variable to track.