Danske Bank says global stocks look pricey but not overvalued as earnings growth lowers P/E to 17.1
SPY•Longer-term measures and outlook
CAPE near 41 signaled expensive markets; the bank said AI-driven productivity could justify higher multiples, supporting further gains near term.
U.S. valuations and earnings growth
U.S. equities traded at a 20.4 forward P/E versus a 20-year average of 16.8; the bank said the level was not alarmingly high.
Rising earnings outpaced price gains, pushing valuations lower versus last year; MSCI USA Tech 125 P/E fell to 22 from 30.
Danske Bank on global equity valuations
Danske Bank said global stocks look stretched on valuation but stopped short of calling them overvalued, citing earnings momentum.
Global equities were up 13% year-to-date; forward P/E stood at 17.1 at end-July versus a 20-year average of 14.9.
