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Main Author: Sam, Rainsy
Format: Recurso digital
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Published: Zenodo 2026
Online Access:https://doi.org/10.5281/zenodo.20360662
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author Sam, Rainsy
author_facet Sam, Rainsy
contents <p class="isselectedend"><span>Executive Summary</span></p> <p><strong>This technical note argues that recent upward revisions of expected 2026 earnings growth for the S&P 500 published by FactSet help explain the continued strength of Wall Street despite repeated new record highs for the index and increasingly elevated P/E ratios</strong>.<strong> While traditional valuation indicators increasingly suggested dangerous overvaluation, the PPP–SIRRIPA framework continued to indicate persistent market attractiveness by integrating growth, discounting, time, and risk into a unified prospective-return structure. The framework is also unique in its ability to quantify dynamically the impact of changing market expectations on intrinsic value determination, rather than relying on traditional ex post narrative interpretations of market movements. Despite its greater completeness, the model requires only three widely available inputs: P/E ratio, expected earnings growth, and a discount rate based on government bond yields.</strong></p>
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spellingShingle Has Wall Street Become Overvalued? Continuous Upward Earnings Revisions and the Persistent Attractiveness of the S&P 500: How the PPP–SIRRIPA Framework Explained Wall Street's Bull Market While Traditional Valuation Metrics Warned of Dangerous Overvaluation
Sam, Rainsy
<p class="isselectedend"><span>Executive Summary</span></p> <p><strong>This technical note argues that recent upward revisions of expected 2026 earnings growth for the S&P 500 published by FactSet help explain the continued strength of Wall Street despite repeated new record highs for the index and increasingly elevated P/E ratios</strong>.<strong> While traditional valuation indicators increasingly suggested dangerous overvaluation, the PPP–SIRRIPA framework continued to indicate persistent market attractiveness by integrating growth, discounting, time, and risk into a unified prospective-return structure. The framework is also unique in its ability to quantify dynamically the impact of changing market expectations on intrinsic value determination, rather than relying on traditional ex post narrative interpretations of market movements. Despite its greater completeness, the model requires only three widely available inputs: P/E ratio, expected earnings growth, and a discount rate based on government bond yields.</strong></p>
title Has Wall Street Become Overvalued? Continuous Upward Earnings Revisions and the Persistent Attractiveness of the S&P 500: How the PPP–SIRRIPA Framework Explained Wall Street's Bull Market While Traditional Valuation Metrics Warned of Dangerous Overvaluation
url https://doi.org/10.5281/zenodo.20360662