S&P 500 Valuation Gauge Hits Historic Extreme in September 2026
The Crestmont P/E for the S&P 500 was 44.5 based on September 2026's average daily closes. It stood 188% above its arithmetic mean and ranked in the 100th percentile of a series covering more than 14 decades.
The Crestmont P/E is a valuation measure tied to the S&P 500 and was calculated using September 2026’s average daily closing levels. Its reading of 44.5 placed it in the 100th percentile of a dataset spanning over 140 years.
The metric’s background traces to Ed Easterling’s method, described in a 2011 Advisor Perspectives article by Kirsten Chang. The September figure exceeded both the arithmetic and geometric historical averages, according to the source material.
A historically high valuation gauge could shape how investors, retirees, pension funds, and financial advisers assess risk. If equity prices remain elevated relative to long-term earnings, future returns may be lower or more volatile, potentially affecting retirement savings, charitable endowments, and household wealth. It may also encourage caution, diversification, or longer time horizons, though valuation alone does not predict short-term market moves.