Sep 8, 2026 · 47 min
Falling P/E ratios challenge the expensive-market narrative
Stocks Aren't as Expensive as You Think | WAYT?
The discussion tests whether rising prices signal a bubble or reflect stronger margins, earnings growth, and a broadening market.
- 1Falling forward P/E ratios complicate claims that U.S. stocks are broadly overvalued.
- 2Rising margins can make price-to-sales ratios look expensive even as earnings-based valuations improve.
- 3Apple weakness, SpaceX’s share unlock, and software’s slide against semiconductors reveal a market in rotation.
Don't miss
The mystery chart is revealed as software divided by semiconductors, capturing a major rotation in market leadership.
The brief
Michael Batnick, Sean Russo, and Matt Robinson examine whether U.S. stocks are truly expensive, weighing falling forward P/E ratios against elevated price-to-sales multiples.
The hosts debate whether recent earnings growth reflects durable investment and stronger margins or an unsustainable mix of spending, debt, and capital expenditure.
A warning about investing in familiar companies broadens into a history of bull markets, speculation, and fraud, including activity around IPOs, prediction markets, and sports betting.
Apple’s relative weakness becomes a case study in market broadening, while a possible foldable iPhone raises questions about innovation, nostalgia, and consumer fatigue.
The episode closes with SpaceX’s share unlock and a mystery chart showing software falling relative to semiconductors, underscoring how markets can rotate before explanations arrive.
Featuring
Michael Batnick
Apple Inc.
Polymarket
Robinhood Markets, Inc.Books & mentions
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