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Valuations in 2026: Why today’s 'expensive' market might not be as risky as it seems
Mag-7 tech stocks trade at nearly 60% below dot-com peak P/E levels as the Federal Reserve shifts to easing policy, supporting higher valuation multiples in 2026.
- Entering 2026, the S&P 500 index faces a setup where valuation can hold or expand, despite headline P/E metrics that make it look expensive, Range says.
- Over the past 25+ years, the S&P 500 index shifted toward high-margin, asset-light platform businesses with durable free cash flow, changing valuation drivers when using the price-to-free-cash-flow metric.
- Tech valuations show a striking gap, with the S&P 500 Technology Index nearly 60% cheaper than its dot-com peak when it traded near 60x P/E, though upside risk remains.
- Many experts expect the 'other 493' S&P 500 companies to rerate higher, with multiples remaining steady entering 2026, as market analysts highlight upside opportunities.
- Range highlights the Fed as the key variable, noting policy has shifted from hiking to cutting, and with the S&P 500’s valuation high, upside risk includes bubblelike jumps in megacap tech firms.
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28 Articles
The Billings Gazette+27 Reposted by 27 other sources
Valuations in 2026: Why today’s 'expensive' market might not be as risky as it seems
Range reports that despite high S&P 500 valuations, the market may not be as risky as in 1999 due to cheaper tech stocks, better quality indices, and easing Fed policies.
·Billings, United States
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Total News Sources28
Leaning Left1Leaning Right1Center25Last UpdatedBias Distribution92% Center
Bias Distribution
- 92% of the sources are Center
92% Center
C 92%
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