At new all-time highs, the stock market has actually gotten cheaper 🤯

A reminder to use valuation metrics with caution ⚠️

On Friday, the stock market made new all-time highs when the S&P 500 closed at 4,839.81.

This was the first new high since the S&P closed at 4,796.56 on January 3, 2022.

And believe it or not, the stock market has actually gotten cheaper over this time.

“While stock prices topped the prior peak set on January 3, 2022, forward earnings estimates are +9.9% higher and valuations are -8.2% (-1.8x multiple points) lower,” UBS’s Jonathan Golub wrote on Monday. “Importantly, 77% of S&P 500 companies trade at a discount to their January 2022 levels.”