US stock valuations versus European peers

Forward price-to-earnings ratio

Forward price to earnings (P/E) ratio is calculated by dividing the price of the S&P 500 by the total of future earnings estimates (next 12 months) of companies in the index. A high P/E ratio can be justified if investors think earnings growth will be high in the future.
Source: Bloomberg as of 11 March 2025. Get the dataCreated with Datawrapper