The market cap weighted average P/E of the top 5 companies is 52.05 (Apple – 27.5, Microsoft – 29.18, Alphabet – 21.9, Amazon – 126.58, Tesla – 110.26). Historical average P/E of S&P is 19.
These stocks should carry a premium to the average P/E of the S&P but the market has chased these stocks back up this past month and they are expensive given current interest rates. Careful with “experts” telling you why these stocks are good buys at these levels (Alphabet aside).
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