US Stocks More Expensive than 1999-2000 DotCom Bubble High, According to EV/EBITDA

Today’s chart is thank’s to this tweet by the People’s Hedge Fund Manager, showing the EV/EBITDA valuation ratio of the S&P 500 US stock index over the past 30 years.

EV/EBITDA is sometimes called the “acquirer’s multiple”, and has certain advantages over Price / Earnings (P/E) as a valuation metric. Here are five earlier posts on P/E ratios I thought worth linking back to at this point:

1. Long term, valuation is all that matters
2. Estimating long-term expected returns based on P/E
3. Using P/E to decide stocks vs bonds
4. P/E ratio’s during the late 2018 flash crash
5. Country P/E and P/B ratios this time last year