Overvalued P/E starts at 20
Fair value P/E is at 15
Undervalued P/E is at 10
Even with the sharp drop in the S&P 500, it is still overvalued.
Based upon S&P 500 Q3 GAAP earnings (96% of companies reporting) the P/E is 16.3. For the S&P 500 to have an undervalued P/E of 10, prices would...