S&P 500 trades at about 21.4 months’ earnings, down from 23

The S&P 500 trades at about 21.4 times blended forward 12 months’ earnings, down from 23 times earnings in late October, which is a net positive for long-term investors with diversified portfolios.

That’s no bargain, yet it’s healthy to see the ceaseless expansion of multiples finally taking a breather. 

Since the release of ChatGPT in November 2022, the S&P 500 market-multiple has increased by a whole number roughly every six months; we were all sleepwalking toward 1999-like valuations and poised to get there as soon as late 2026.

Jonathan Levin Bloomberg February 23, 2026

https://www.bloomberg.com/opinion/articles/2026-02-23/the-ai-scare-trade-is-heathy-for-the-stock-market