S&P 500 Price-to-Earnings Ratio (Forward) vs 2-Year Treasury Yield
S&P 500 Price-to-Earnings Ratio (Forward) is currently 20.3x (down -1.20). 2-Year Treasury Yield is currently 3.7% (down -0.3%).
| Metric | S&P 500 Price-to-Earnings Ratio (Forward) | 2-Year Treasury Yield |
|---|---|---|
| Current value | 20.3x | 3.7% |
| Previous reading | 21.5x | 3.99% |
| Change | -1.20 | -0.3% |
| Trend | down | down |
| Frequency | Weekly | Daily |
| Source | S&P Global | U.S. Treasury |
| Last updated | 2026-04-04 | 2026-04-04 |
| Category | growth | rates |
What S&P 500 Price-to-Earnings Ratio (Forward) measures
The forward price-to-earnings ratio measures the S&P 500 index price relative to expected earnings per share over the next 12 months. It is the most widely used valuation metric for the U.S. stock market.
The S&P 500 forward P/E at 20.3x has declined from its recent highs but remains above the 25-year average of approximately 16.5x. Markets are pricing in solid earnings growth but are no longer at 'euphoric' valuations. For executives evaluating M&A, stock compensation, or capital market activity, current valuations suggest a market that is fairly valued to modestly expensive — not cheap, but not at bubble levels either.
What 2-Year Treasury Yield measures
The 2-year Treasury yield reflects market expectations for short-term interest rates over the next two years. It is the most sensitive government bond to Federal Reserve policy changes.
The 2-year yield at 3.71% — well below the current fed funds rate of 4.50% — signals that markets expect the Fed to cut rates. The wider this gap, the more aggressively markets expect easing. For CFOs, short-term borrowing costs may decline sooner than long-term rates, favoring shorter-duration financing strategies.
Frequently asked
S&P 500 Price-to-Earnings Ratio (Forward) is currently 20.3x, down -1.20 from the previous reading. Source: S&P Global, updated weekly.
2-Year Treasury Yield is currently 3.7%, down -0.3% from the previous reading. Source: U.S. Treasury, updated daily.
The S&P 500 forward P/E at 20.3x has declined from its recent highs but remains above the 25-year average of approximately 16.5x. Markets are pricing in solid earnings growth but are no longer at 'eup The 2-year yield at 3.71% — well below the current fed funds rate of 4.50% — signals that markets expect the Fed to cut rates. The wider this gap, the more aggressively markets expect easing. For CFOs