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 is 30.0x, which has remained flat over the past month, showing no change from the readings since July 25, 2026. This persistent level indicates that the market is currently valued above average, but with no upward momentum, it suggests a potential risk of stagnation rather than growth. Given this flat trend at a high valuation, recession risk appears elevated as the market may be overextended without signs of improvement, indicating vulnerability should economic conditions shift negatively.
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.
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