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In One Chart: By one measure, stock valuations are at their highest level since 2004

Already lofty market valuations got another boost from recent an advance in the S&P 500 index, sending one of the most commonly used price-to-earnings ratios based on future earnings, to the highest level since 2004, according to FactSet data.

The S&P 500 index SPX, +0.17% 12-month forward P/E climbed to 17.6, based on Friday’s closing price of 2,351.16 and earnings-per-share estimate of $133.49 for 2017.

For all of 2017, analysts are projecting earnings growth of 10.2% and revenue growth of 5.6%.

The current forward 12-month P/E ratio is now above 5-year average of 15.2, 10-year average of 14.4, 15-year average of 15.2, and 20-year average of 17.2, according to FactSet.

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