February 2025 Charts
S&P 500 Valuations. The largest companies in the S&P 500 have significantly higher forward P/E ratios, with the top 10 trading at 30.7x earnings. Nearly 40% of the index weight is concentrated in those stocks, meaning these few companies have an outsized impact on index performance. Investors should be mindful of paying a premium for large growth stocks and the risks associated with increased market concentration.