Is the Nasdaq with a 28 times dynamic PE expensive?

Wallstreetcn
2025.06.28 00:36
portai
I'm PortAI, I can summarize articles.

Overnight, the Nasdaq index reached its first new high since December of last year. The enthusiasm for AI trading continues to rise, and visibility is expected to last until 2026. The dynamic price-to-earnings ratio of the Nasdaq is approximately 28 times, which is 20% higher than its 10-year historical average (10-year average = about 22.5 times), but is basically in line with the 5-year average and far below recent peaks. Reasons to remain bullish include: the Federal Reserve's interest rate cuts, GenAI "efficiency," and the relaxation of regulations by Trump have yet to materialize

Overnight, the Nasdaq index reached its first new high since December of last year. The enthusiasm for AI trading continues to rise, and visibility is expected to last until 2026.

The dynamic price-to-earnings ratio of the Nasdaq is approximately 28 times, which is 20% higher than its 10-year historical average (10-year average = about 22.5 times), but is basically in line with the 5-year average and far below recent peaks.

Reasons to remain bullish include: the Federal Reserve's interest rate cuts, GenAI "efficiency," and the deregulation by Trump that has yet to arrive.

Source: Wallstreetcn The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.