Danske Bank says global stocks look pricey but not overvalued as earnings growth lowers P/E to 17.1
Reuters2026/08/24 05:39- Danske Bank flagged stretched equity valuations but stopped short of calling global stocks overvalued, citing earnings momentum.
- Global equities were up 13% year-to-date; forward P/E stood at 17.1 at end-July versus a 20-year average of 14.9.
- US equities traded at a 20.4 forward P/E versus a 20-year average of 16.8; the bank said the level was not alarmingly high.
- Rising earnings outpaced price gains, pushing valuations lower versus last year; MSCI USA Tech 125 P/E fell to 22 from 30.
- CAPE near 41 signaled expensive markets; the bank said AI-driven productivity could justify higher multiples, supporting further gains near term.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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