November’s rising tide lifted all boats and our Ratio of Ratios is unchanged from the end of October. Absolute trailing P/E values for both Large and Small Caps spiked higher with the market, but remain well below readings seen at similar S&P 500 market levels at the end of July.

Small Cap Discount = 27%

Using non-normalized trailing operating earnings, Small Caps are selling at a 27% discount to Large Caps. November’s rising tide lifted all boats and our Ratio of Ratios was unchanged from the end of October. Absolute trailing P/E values, both for Large and Small Caps, spiked higher with the market, but are well below those seen at similar S&P 500 market levels at the end of July—another testament to this vignette’s most suitable benchmarks (Equal Weighted S&P 500 and S&P 600) lagging over that time period. Looking at full-year 2024 numbers, the Small Cap/Large Cap P/E discount is narrower at 23%.

Small Cap Discount = 27%

Using non-normalized trailing operating earnings, Small Caps are selling at a 27% discount to Large Caps. November’s rising tide lifted all boats and our Ratio of Ratios was unchanged from the end of October. Absolute trailing P/E values, both for Large and Small Caps, spiked higher with the market, but are well below those seen at similar S&P 500 market levels at the end of July—another testament to this vignette’s most suitable benchmarks (Equal Weighted S&P 500 and S&P 600) lagging over that time period. Looking at full-year 2024 numbers, the Small Cap/Large Cap P/E discount is narrower at 23%.