{"id":210093,"date":"2024-08-06T09:41:12","date_gmt":"2024-08-06T13:41:12","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=210093"},"modified":"2024-08-06T10:06:55","modified_gmt":"2024-08-06T14:06:55","slug":"august-market-valuation-update","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/august-market-valuation-update\/","title":{"rendered":"August Market Valuation Update"},"content":{"rendered":"\n

Here is the latest update for August from Validea\u2019s market valuation tool.<\/a> Rather than focusing on market-cap weighted indexes like the S&P 500, our tool focuses on the valuation of the average stock relative to history. We use the median of our investable universe of 2700 stocks to perform the calculation.<\/p>\n\n\n\n

The big run in small-cap stocks in July led to a pretty big increase in the median PE ratio. The median PE rose from 20 to 21.5 for the month and went from average to above average historically. It is now in the 67th percentile.<\/p>\n\n\n

\n
\"\"
Source: Validea<\/figcaption><\/figure>\n<\/div>\n\n\n

Using current year earnings estimates, valuations rose in a similar fashion.<\/p>\n\n\n

\n
\"\"
Source: Validea<\/figcaption><\/figure>\n<\/div>\n\n\n

The Price\/Sales is the one metric where the median stock looks very expensive. It rose from the 70th percentile in July to the 85th percentile in August.<\/p>\n\n\n

\n
\"\"
Source: Validea<\/figcaption><\/figure>\n<\/div>","protected":false},"excerpt":{"rendered":"

Here is the latest update for August from Validea\u2019s market valuation tool. Rather than focusing on market-cap weighted indexes like the S&P 500, our tool focuses on the valuation of the average stock relative to history. We use the median of our investable universe of 2700 stocks to perform the calculation. The big run in small-cap stocks […]<\/p>\n","protected":false},"author":598,"featured_media":210094,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[6,8,9,22,26,3],"tags":[3598,7614],"contributors-categories":[13819],"class_list":["post-210093","post","type-post","status-publish","format-standard","has-post-thumbnail","category-north-america","category-region","category-securities","category-stocks","category-text-articles","category-traders-insight","tag-market-outlook","tag-market-valuation","contributors-categories-validea-capital-management"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\nAugust Market Valuation Update | Traders' Insight<\/title>\n<meta name=\"description\" content=\"The big run in small-cap stocks in July led to a pretty big increase in the median PE ratio. 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