--- title: "S&P 500 P/E Ratio History" description: "Historical S&P 500 trailing price-to-earnings ratio and Shiller CAPE ratio from 1990 to 2024, showing how equity valuations have evolved through market cycles." canonical: https://www.getswoopr.com/tables/returns/sp500-pe-ratio-history/ source: "Swoopr Investment: https://www.getswoopr.com" --- ## Direct Answer > The S&P 500's price-to-earnings ratio has averaged approximately 15-17x over the past century. It peaked at approximately 123x in December 2009 (earnings temporarily depressed) and at 30-32x in March 2000 (dot-com bubble). The Shiller CAPE (10-year average earnings) has averaged approximately 16-17x and stood at approximately 35-38x in 2024, above the historical average. # S&P 500 P/E Ratio (Valuation) History ## S&P 500 trailing P/E ratio at year end (selected years) | Year | Trailing P/E (approx) | Shiller CAPE (approx) | Context | | --- | --- | --- | --- | | 1990 | 15x | 15x | Near long-run average | | 1995 | 17x | 21x | Bull market expanding | | 1997 | 25x | 28x | Dot-com enthusiasm building | | 1999 | 30x | 44x | Dot-com peak valuation | | 2002 | 31x | 22x | Earnings trough post-bust | | 2007 | 20x | 27x | Pre-crisis expansion peak | | 2009 | ~84x | 13x | Earnings trough; CAPE shows cheap | | 2010 | 18x | 21x | Recovery underway | | 2015 | 23x | 27x | Post-QE expansion | | 2018 | 20x | 29x | Rate shock year-end selloff | | 2019 | 25x | 31x | Pre-COVID peak | | 2020 | ~38x | 33x | Earnings crash; prices held up | | 2021 | 26x | 40x | Zero rates; peak CAPE | | 2022 | 19x | 28x | Rate shock compression | | 2023 | 23x | 32x | AI enthusiasm rally | | 2024 | 27x | ~37x | Elevated vs. historical average | ![Line chart of S&P 500 trailing P/E ratio at year end (selected years), 1990 to 2024, with 2 series. Trailing P/E (approx) starts at 15x, peaks at 31x in 2002, falls to a low of 15x in 1990 and ends at 27x in 2024.](https://www.getswoopr.com/images/charts/tables-returns-sp500-pe-ratio-history-1.webp) *S&P 500 trailing P/E ratio at year end (selected years), charted from the table above. Select the chart to open it full size.* Source: [Robert Shiller: Online Data (CAPE data)](https://www.econ.yale.edu/~shiller/data.htm). Data through 2024; last checked September 2026. ## Frequently asked questions What P/E ratio is considered normal for the S&P 500? The long-run average trailing P/E for the S&P 500 is approximately 15-17x. However, 'normal' has shifted upward since the 1990s due to: lower interest rates (higher P/E justified when risk-free rates are low), higher corporate profit margins (technology companies earn more per dollar of revenue), and improved financial information reducing risk premiums. Many analysts argue the fair P/E in the 2020s is 18-22x due to structural changes. The Shiller CAPE's long-run average is approximately 16-17x, and above-average CAPE has historically predicted below-average forward returns. Why was the P/E so high in 2009? In 2009, earnings were depressed to near zero or negative for many financial companies due to loan write-downs from the financial crisis. The 'E' in P/E shrank dramatically even as stock prices stabilized and began recovering. This created a mechanically high P/E that was not indicative of stretched valuation but rather temporarily suppressed earnings. Using normalized earnings (as in the Shiller CAPE which averages 10 years of earnings) avoids this distortion: the Shiller CAPE in 2009 fell to approximately 13x, correctly identifying stocks as cheap relative to history. Can high P/E ratios persist for years? Yes. The U.S. market has traded at above-average P/E ratios since approximately 1992, with interruptions during the 2002 and 2008-2009 crashes when earnings recovered faster than prices. Japan provides a cautionary example: the Nikkei traded at 50-80x P/E in the late 1980s before a 30-year secular bear market. However, U.S. corporate governance, innovation, and earnings growth have supported higher-than-global-average valuations. The tension in 2024-2025: elevated CAPE suggests below-average forward returns, but timing the correction has been historically very difficult. ## Cite This Page If you reference this table in your own work, use the following citation format and add the date you accessed it: > Swoopr Editorial Team. (2026). *S&P 500 P/E Ratio (Valuation) History*. Swoopr Investment. [https://www.getswoopr.com/tables/returns/sp500-pe-ratio-history/](https://www.getswoopr.com/tables/returns/sp500-pe-ratio-history/) Check the figures against the primary sources listed under References before you rely on or republish them; the series they come from are revised. ## References - [Robert Shiller: Online Data (CAPE data)](https://www.econ.yale.edu/~shiller/data.htm) [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) produces independent investment education and research content. Corrections: [corrections policy](https://www.getswoopr.com/legal/corrections-policy/). Standards: [editorial standards](https://www.getswoopr.com/legal/editorial-policy/).