Bloomberg Intelligence's Equity Market Minute 3/01/2022

Gina Martin Adams discusses the S&P 500, highlighting that its multiples are 6% below fair value. She presents an analysis showing that the top five stocks in the index command a 50% premium over the rest, compared to a historical average of 20%. Without these stocks, the S&P 500 trades at 17 times forward earnings. The equal weighted S&P 500 is trading below its pre-pandemic average at 16.2 times earnings, indicating it may be undervalued. The video concludes with a summary of these insights.

What does Gina Martin Adams suggest about the S&P 500 multiples in relation to their fair value?

• They are 10% below fair value.

• They are 6% below fair value.

• They are 6% above fair value.

• They are at fair value.

How much of a premium do the five largest stocks in the S&P 500 command compared to the rest of the index?

• 60%

• 50%

• 30%

• 20%

What is the forward PE ratio of the S&P 500 without its five largest stocks?

• 17 times earnings

• 15 times earnings

• 19 times earnings

• 20 times earnings

How does the equal-weighted S&P 500's current forward PE level compare to its pre-pandemic 5-year average?

• It is above the average.

• It is below the average.

• It is equal to the average.

• It is significantly above the average.

What is the current forward PE ratio of the equal-weighted S&P 500?

• 18.2 times earnings

• 17.2 times earnings

• 16.2 times earnings

• 15.2 times earnings