Prof G Markets · Friday, July 3, 2026
Tom Lee suggested that analyzing the Schiller P/E ratio by sector can provide a more accurate comparison, noting that the tech sector's Schiller P/E is not as extended when compared to historical data, due to changes in earnings composition. He mentioned that tech is now a much larger contributor to overall earnings compared to the late 1990s.
“You know, one thing that we've done in the past at, uh, when I was at JP Morgan, and then we continue to maintain it at Funstrat is yeah, you can run a Schiller PE by sector. And in that way, it's more apples to apples.”
“Like, for instance, if you did tech, Schiller PE, then you can judge it 1929 versus now.”
“But by that measurement, uh, the Schiller PE is not nearly as extended.”