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S&P 500 earnings yield rises above 5% for first time since May 2025, signaling more reasonable valuations.

Company Fundamentals
30 Mar 2026
Seeking Alpha
View Source
Bullish
pluang ai news

On March 27, 2026, the S&P 500 earnings yield climbed back above 5%, reaching 5.06%, the first time since early May 2025. This increase suggests that the S&P 500 is returning to more reasonable valuation levels, with a 5% earnings yield roughly corresponding to a 20x price-to-earnings ratio. This shift marks an improvement from the higher P/E valuations seen earlier in the year, potentially indicating better investment value in the benchmark index going forward.

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