Ashby Daniels

Stocks are up 73% since valuations were last this low

According to FactSet, the S&P 500's forward 12-month P/E ratio was 17.7 on November 5, 2026. That's below both its 5-year average of 19.8 and its 10-year average of 19.1, and it's the lowest reading since November 1, 2023, when it was 17.5.

Line chart of the S&P 500 forward 12-month P/E ratio over the past 10 years. It peaked near 23.5 in 2020 and near 23 in late 2025, then fell to 17.7 in November 2026, below the 5-year average of 19.8 and the 10-year average of 19.1.
S&P 500 forward 12-month P/E ratio with its 5- and 10-year averages, 10 years through November 5, 2026. FactSet.

The last time valuations were this low, on November 1, 2023, the S&P 500 closed at 4,238. On November 5, 2026, it was at 7,354. That's a gain of more than 3,000 points, or more than 73% (not including dividends), and valuations are about where they were back then. Pretty, pretty wild.

It speaks to the strength of earnings and how earnings drive prices higher over time.