"Stocks Are More Expensive Than Ever According to One Popular Measure. Here's What That Means for Investors," January 27, 2020

Summary: Stocks Are More Expensive Than Ever According to One Popular Measure. Here's What That Means for Investors by Rob Curran Sales are the new earnings when it comes to evaluating stocks, and that could be a danger sign. The price-to-sales ratio on the Standard & Poor’s 500 recently hit 2.41, the highest-ever level. Apart from a spike to around 2 in the late 1990s, the price-to-sales ratio for the index has traded between 0.8 and 1.9 for 25 years, according to Yardeni Research.