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As Bull Market Hits Record, Stocks Slightly Overvalued

The technology sector looks the most pricey today while communications services appears to be the cheapest.

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With the current bull market now the longest in history and the S&P 500 reaching an all-time high this week, we thought it would be a good time to check in on our market fair value.

This metric shows how big of a gap, on average, we see between market prices and our estimate of intrinsic value across the entire market or a specific sector.

The current ratio for all rated stocks is 1.02. This indicates that the market is slightly overvalued. That compares to a 52-week high of 1.11 seen in January and a 52-week low of 0.97 reached in April. 

There isn't a large gap in average valuations by sector. The most overvalued is technology at 1.06--that's 6% above our estimates. The industrials, consumer cyclical, and basic materials sectors are close behind, looking 4% overvalued. does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.