Is the market expensive?

Earnings yield

4.7 % · median P/E 21.4

Compare it with today's 10-year bond yield: if the bond yields more, it pays more today for each dollar.

It is the inverse of the P/E: what the median company earns for every $100 it costs. If the bond yields more, the stock only makes up for it if its earnings grow.

Source: Buffettology (1997): value relative to the government bond = EPS / bond yield.

This is context, not a signal to buy or sell.

The 6-point rule

Market dividend yield: 1.26 %

The rule would call for bonds if the long-term bond yielded 7.26 % or more (dividend + 6 points).

Market-cap-weighted dividend yield of 2,033 companies above $2 billion; the original rule uses the S&P 500.

If the long-term government bond yields 6 points or more above the market's dividend yield, the rule says sell stocks and buy bonds. Below that, stay in stocks.

Source: Beating the Street (1993), principle no. 8.

This is context, not a signal to buy or sell.

10-year US Treasury

Data not available

Kaplio does not receive this yield with its market data today and does not estimate it.

Every value is discounted against the bond yield: when it rises, what a company's future earnings are worth today falls, and vice versa. That is why it is called the gravity of prices.

Source: Berkshire Hathaway annual meeting, 2021 ("interest rates are to asset values what gravity is to matter").

This is context, not a signal to buy or sell.

Median P/E by sector

Median of the 2,043 companies above $2 billion with consistent data · computed on October 28, 2026

"Cheap today": companies in the sector with a green Valuation on their page. The number opens the screener with that filter.

Indices

Other markets tools

• Stock Screener — Filter the companies above $2 billion with consistent data by the Kaplio lights, P/E, ROE, dividend and more.
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