S&P 500 P/E Ratio Hits 24x, Nearing Dot-Com Bubble Levels, as of April 2026

According to Financial Times, the S&P 500 trailing price-to-earnings ratio reached approximately 24x as of April 2026, compared to a historical average of 16x. The Shiller cyclically adjusted P/E ratio (CAPE) has climbed above 37x, approaching levels last seen during the dot-com bubble era.

The report notes that the elevated valuation reflects market expectations built on assumptions around AI-driven earnings growth, declining inflation, falling interest rates, and controlled risk.