Is the stock market overvalued right now?

The S&P 500’s forward P/E near 20 remains above its long-run norm despite recent tech weakness.

Key valuation metrics like the Shiller CAPE ratio have reached historically extreme levels surpassed only during the dot-com bubble.

The S&P 500’s forward P/E near 20 and heavy mega-cap concentration still sit above what underlying earnings growth can justify.

Earnings, AI-driven productivity gains, and resilient consumer spending justify current valuations even if multiples are above historical averages.