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 premium do the largest stocks command over the rest of the S&P 500 index?

In what way is the equal weighted S&P 500 considered cheap?