NASDAQ P/E Ratio — Tech Earnings Valuation
Track the NASDAQ Composite P/E ratio. Tech-sector P/E above 35 signals speculative excess; above 50 echoes dot-com bubble territory.
Current Value
Trigger Level: >35 = richly valued, >50 = dot-com territory
Historical Trend
AI Analysis
Today's NASDAQ P/E Ratio stands at 30.0x, which has remained flat over the past month, with no variation from this level since July 8, 2026. This persistent valuation suggests that the market is currently viewed as above average, but the lack of upward momentum indicates a stable sentiment rather than an overheating market. Given this flat trend, recession risk appears contained for now, as the P/E ratio is not signaling excessive overvaluation that typically precedes downturns. However, vigilance is warranted, as sustained high valuations can still pose risks if economic conditions shift unexpectedly.
What is the NASDAQ P/E?
The NASDAQ P/E ratio measures the composite index price relative to the aggregate trailing earnings of its 3,000+ constituents. Given its tech-heavy composition, it captures the premium investors pay for technology growth.
Why It Matters for Recession Risk
NASDAQ companies typically command higher P/Es due to growth expectations. But when the ratio exceeds 35-40x, it signals that growth expectations may be unrealistic, creating vulnerability to earnings disappointments.
Historical Context
During the dot-com bubble, NASDAQ P/E exceeded 100x for many companies, with the composite over 70x. It crashed 78% when earnings failed to materialize. Current levels around 30-35x are elevated but not extreme by post-2020 standards.
Related Indicators
Sahm Rule
Track the Sahm Rule in real time. Current value, historical chart, and AI analysis. The Sahm Rule has correctly signaled every US recession since 1970.
Yield Curve 2s10s
Monitor the 2-year/10-year Treasury yield curve spread in real time. Yield curve inversions have preceded every US recession since 1955.
Yield Curve 2s30s
Track the 2-year/30-year Treasury yield curve spread. A wider view of the term structure that signals long-term economic expectations.
Get Daily NASDAQ P/E Alerts
Receive SMS and email alerts when this indicator changes status. Stay ahead of the market.