Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Stocks

S&P 500 Final 2024 Q4 Earnings: Still Overvalued

by Invest Daily Pro
April 11, 2025
in Stocks
0
S&P 500 Final 2024 Q4 Earnings:  Still Overvalued
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

S&P 500 earnings are in for 2024 Q4, and here is our valuation analysis.

The following chart shows the normal value range of the S&P 500 index ($SPX), indicating where the S&P 500 would have to be to have an overvalued P/E of 20 (red line), a fairly valued P/E of 15 (blue line), or an undervalued P/E of 10 (green line). Annotations on the right side of the chart show where the range is projected to be based on earnings estimates through 2025 Q4.



Historically, price has usually remained below the top of the normal value range (red line); however, since about 1998, it has not been uncommon for price to exceed normal overvalued levels, sometimes by a lot. The market has been mostly overvalued since 1992, and it has not been undervalued since 1984. We could say that this is the “new normal,” except that it isn’t normal by GAAP (Generally Accepted Accounting Principles) standards.

We use GAAP earnings as the basis for our analysis. The table below shows earnings projections through December 2025. Keep in mind that the P/E estimates are calculated based upon the S&P 500 close as of March 31, 2025. They will change daily depending on where the market goes from here. It is notable that the P/E remains outside the normal range.

The following table shows where the bands are projected be, based upon earnings estimates through 2025 Q4.

This DecisionPoint chart keeps track of S&P 500 fundamentals, P/E and yield, and it is updated daily — not that you need to watch it that closely, but it is up-to-date when you need it.

CONCLUSION: The market is still very overvalued and the P/E is still well above the normal range. Earnings have ticked up and are projected to trend higher for the next four quarters. High valuation applies negative pressure on the market, but other more positive factors can keep the market in overvalued territory. The current bear market has brought the market to a less overvalued status, but there is still a long way to go to more normal valuation.


Watch the latest episode of DecisionPoint on StockCharts TV’s YouTube channel here!


(c) Copyright 2025 DecisionPoint.com


Technical Analysis is a windsock, not a crystal ball.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.


Helpful DecisionPoint Links:

DecisionPoint Alert Chart List

DecisionPoint Golden Cross/Silver Cross Index Chart List

DecisionPoint Sector Chart List

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

ShareTweetPin

Related Posts

Chart Mania – 23 ATR Move in QQQ – Metals Lead 2025 – XLV Oversold – XLU Breakout – ITB Moment of Truth
Stocks

Chart Mania – 23 ATR Move in QQQ – Metals Lead 2025 – XLV Oversold – XLU Breakout – ITB Moment of Truth

July 26, 2025
Momentum Leaders Are Rotating — Here’s How to Find Them
Stocks

Momentum Leaders Are Rotating — Here’s How to Find Them

July 25, 2025
S&P 500 Breaking Out Again: What This Means for Your Portfolio
Stocks

S&P 500 Breaking Out Again: What This Means for Your Portfolio

July 25, 2025
A Wild Ride For the History Books: 2025 Mid-Year Recap
Stocks

A Wild Ride For the History Books: 2025 Mid-Year Recap

July 24, 2025
Is META Breaking Out or Breaking Down?
Stocks

Is META Breaking Out or Breaking Down?

July 24, 2025
Tech Taps the Brakes, Homebuilders Hit the Gas: See the Rotation on StockCharts Today
Stocks

Tech Taps the Brakes, Homebuilders Hit the Gas: See the Rotation on StockCharts Today

July 23, 2025
Next Post
Tech 5: Tech Stocks React to Tariffs in Bumpy Trading Week

Tech 5: Tech Stocks React to Tariffs in Bumpy Trading Week

Recommended

Ukraine’s history unveiled

Ukraine’s history unveiled

December 22, 2024
Saudi Arabia acquires 40 per cent stake in Selfridges, partnering with Thailand’s Central Group

Saudi Arabia acquires 40 per cent stake in Selfridges, partnering with Thailand’s Central Group

October 8, 2024
The Code Registry Rolls Out Free AI-Enhanced Code Escrow Service

The Code Registry Rolls Out Free AI-Enhanced Code Escrow Service

November 1, 2024
Labour told growth plan will fail without £50bn investment

Labour told growth plan will fail without £50bn investment

August 7, 2024
IC studying rules for selling insurance to OFWs

IC studying rules for selling insurance to OFWs

August 1, 2024
Relaxation, quality time, activities among travel trends in Asia for 2025

Relaxation, quality time, activities among travel trends in Asia for 2025

December 9, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Thank you

    Copyright © 2025 investdailypro.com | All Rights Reserved