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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (77891)8/18/2025 11:43:21 AM
From: E_K_S  Read Replies (2) of 78478
 
Here is perplexity.AI similar observation but a bit higher than your number

  • For the full year 2024, the S&P 500’s forward P/E ratio was approximately 21.8, while excluding the Mag 7 it was around 19.7.

  • As of mid-2025 (around June), the S&P 500’s forward P/E ratio is estimated at roughly 24.6. If you remove the Mag 7, it falls to about 21.9.

  • Excluding the Mag 7 brings the S&P 500’s P/E ratio much closer to its long-term average, reducing it by 2–3 points compared to the headline number.

  • As of August 2025, the S&P 500 is about 23–24x forward earnings, while ex-Mag 7 it’s closer to 21–22x

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So maybe we see some selling in the Mag 7 and money flows into the other 493 stocks up and to the point on the long term average. A market sell off may impact all the $SPX and thinking Russell 1000 may see a smaller correction.

FWIW, like Paul Sr. I am scanning the new lows as well as finding some small caps at/near 5 year lows which make money and have consistent positive FCF (both annually and QoQ)
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