What are the factors behind current high stock market valuations?

Stalla-Bourdillon, Arthur; Chatelais, N.

Stalla-Bourdillon, Arthur; Chatelais, N. (2020), What are the factors behind current high stock market valuations?, Bloc-notes éco, 189

Type

Article accepté pour publication ou publié

External document link

https://blocnotesdeleco.banque-france.fr/en/blog-entry/what-are-factors-behind-current-high-stock-market-valuations

Date

2020

Journal name

Bloc-notes éco

Number

189

Publisher

Banque de France

Metadata

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Author(s)

Stalla-Bourdillon, Arthur
Chatelais, N.

Abstract (EN)

Despite the corrections at the end of 2018 and the Covid-19 shock, price-earnings ratios remain at high levels, particularly in the United States. However, based on indices adjusted for expected growth and the level of interest rates, this trend does not appear to be the result of irrational exuberance like in previous speculative episodes.

Subjects / Keywords

Relative Return Indicator; risk tolerance; Risk-free rate; markets; E43,E44,D81,332/Bourse, Marchés financiers. Taux d’intérêt – Stocks options – Analyse Financière