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 Earnings for 2025 Q1 — Still Overvalued

by Invest Daily Pro
July 2, 2025
in Stocks
0
S&P 500 Earnings for 2025 Q1 — Still Overvalued
0
SHARES
226
VIEWS
Share on FacebookShare on Twitter

S&P 500 earnings are in for 2025 Q1, and here is our valuation analysis.

The following chart shows the normal value range of the S&P 500 Index, indicating where the S&P 500 would have to be in order 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 upon earnings estimates through 2026 Q1.



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 overvalue 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 March 2026. Keep in mind that the P/E estimates are calculated based upon the S&P 500 close as of June 30, 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 2026 Q1.

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.


(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.

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
Robinhood Shares Hit Record High on EU Launch of Tokenized US Stocks

Robinhood Shares Hit Record High on EU Launch of Tokenized US Stocks

Recommended

Shares may rally further as BSP starts easing cycle

Shares may rally further as BSP starts easing cycle

August 18, 2024
Teleperformance Philippines recognized at 2024 Asia CEO Awards

Teleperformance Philippines recognized at 2024 Asia CEO Awards

October 17, 2024
Meralco sees lower generation charge for October

Meralco sees lower generation charge for October

October 8, 2024
Animal Kingdom partners with NFRDI to promote FishKwela

Animal Kingdom partners with NFRDI to promote FishKwela

December 20, 2024
House sports bill pushed

House sports bill pushed

August 4, 2024
May FDI net inflows fall to 16-month low

May FDI net inflows fall to 16-month low

August 13, 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