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S&P 500 Forward P/E Hits 21x — Above the 5-Year Average but Not at Extremes The S&P 500's forward price-to-earnings ratio sits near 21x, according to FactSet — a level above its five-year average but short of historic extremes.
The forward P/E ratio measures the index's current price against analysts' estimates of earnings over the coming twelve months.
A reading near 21x indicates that investors are paying a premium relative to the index's recent five-year norm, a benchmark frequently cited as a quick gauge of whether equities look stretched.
Per FactSet, the current 21x figure is above that five-year average.
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