Market Valuation: Is The Market Still Overvalued?

Advisor Perspectives Charts 6.85K Followers Follow Summary Market valuation indicators show the S&P 500 is overvalued by 121% to 227% based on August 2026 monthly data. The four valuation indicators' average sits at 172%, remaining over 3 standard deviations above its historical mean. Market valuation indicators frame long-term investment return expectations rather than predicting short-term market direction signals. solitude72/iStock via Getty Images By Kirsten Chang Market valuation indicators are used by investors and analysts to gauge whether markets are overvalued, undervalued, or fairly valued relative to historical norms. Here is a summary of the four market valuation indicators we update This article was written by Advisor Perspectives Charts 6.85K Followers Follow Advisor Perspectives is a leading interactive publisher for Registered Investment Advisors. Our AP Charts & Analysis portion of our website analyzes economic and market trends.