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US Stock Market Valuation

Three independent gauges of how expensive US equities are — the CAPE ratio, the Buffett Indicator, and the dividend yield — each measured against its own history so they sit on one cheap-to-expensive scale.

Every measure we track sits in the expensive third of its own history — by these gauges, the US market looks historically expensive.

Each gauge is placed on the cheap-to-expensive scale by its percentile rank within its own recorded history (the dividend yield is inverted, since a higher yield means a cheaper market). No single metric is decisive — see how each is built and where it is weak on the methodology page.