5.3 times book

Today’s chart shows the S&P 500 trading at 5.3x price-to-book value — the highest multiple on record, surpassing even the dot-com bubble. While this highlights how stretched US equity valuations appear, two caveats are important: 1) book value is an imperfect yardstick, especially in an economy driven by intangible assets and technological innovation, and 2) high valuations alone are poor predictors of short- or medium-term market direction.

At ECP, we avoid broad generalizations and instead focus on uncovering quality companies where fundamentals remain undervalued — a selective approach that offers better protection in markets priced for perfection.