These standard deviation bands correspond with CMV ratings to estimate overall stock market over/undervaluation. As illustrated, the current Buffett Indicator value of 230% is 2.4 standard deviations above the trend line, indicating the market ...

September 13, 2025 - Economic Indicator: The ratio also provides a broad measure of economic health. Significant deviations between market capitalization and GDP can reflect shifts in investor sentiment or economic conditions, offering a macroeconomic perspective. Historical Comparison: By comparing the current Buffett Indicator ratio with historical data, investors can identify long-term market trends and assess whether current valuations are in line with historical norms.

The ratio Warren Buffett uses for market valuation, TMC/GNP, is like a P/S ratio: In this case, the price is the total market cap of all stocks that are traded, and sales is the total gross national product of the country. Moreover, GuruFocus introduces a new indicator, TMC/(GDP + Total Assets of Fed), which acts similarly but gives an additional edition of market valuation.

August 22, 2023 - Comparing the current Buffett Indicator to its 10-year average is a good way to assess its current value. As of the end of July 2023, the Buffett Indicator was at 182%, indicating the market is overvalued.

Buffett Indicator was 2.209 as of 2025-12-30, according to GuruFocus. Historically, Buffett Indicator reached a record high of 2.222 and a record low of 0.312, the median value is 0.892. Typical value range is from 1.28 to 1.88.

2 weeks ago - The ratio of market capitalization to GDP is also known as the Buffet Indicator. In a Forbes interview in December 2001, Warren Buffett said that the ratio is a useful tool for gauging the overall valuation of the stock market, where a range ...

These models are contrarian indicators. When market sentiment is bearish/panicked we display them in green. When sentiment is bullish/euphoric, we show them as red. These classifications very bluntly reflect Buffett's timeless maxim "be fearful ...

With the Q2 GDP second estimate, we now have an updated look at the popular "Buffett Indicator" -- the ratio of corporate equities to GDP. The current reading is 195.2%, down slightly from the previous quarter and the lowest level since 2023.

April 1, 2023 - Warren Buffett popularized this indicator more than 20 years ago. A bull market is coming. No, wait -- the stock market is about to crash. Actually, stocks will muddle along in 2023.

The calculation of the Buffett Indicator involves dividing the total market value of all publicly-traded stocks within a country by the country's Gross Domestic Product (GDP). By comparing the stock market's size to the overall economic output, ...

June 30, 2025 - It was proposed as a metric by investor Warren Buffett in 2001, who called it "probably the best single measure of where valuations stand at any given moment", and its modern form compares the capitalization of the US Wilshire 5000 index to US GDP. It is widely followed by the financial media ...

With the Q2 GDP third estimate, we now have an updated look at the popular "Buffett Indicator" -- the ratio of corporate equities to GDP. The current reading is 215.6%, one of the highest levels on record.

1 day ago - The US - Market Cap (% of GDP) data, commonly referred to as the Buffet Indicator, represents the ratio of the total market value of all publicly listed companies in the US stock market to the country's Gross Domestic Product (GDP).

September 20, 2023 - Here in 2023, the Warren Buffett Indicator stands at 167.3%, suggesting the total market capitalization of all stocks is trading at a significant premium to the gross domestic product, or in other words, the stock market is very overvalued.

November 14, 2024 - The Market Cap to GDP Ratio (also known as the Buffett Indicator) is a measure of the total value of all publicly-traded stocks in a country, divided by that country’s Gross Domestic Product (GDP). It used as a broad way of assessing whether the country’s stock market is overvalued or undervalued, compared to a historical average.

2 weeks ago - The ratio of market capitalization to GDP is also known as the Buffet Indicator. In a Forbes interview in December 2001, Warren Buffett said that the ratio is a useful tool for gauging the overall valuation of the stock market, where a range ...

July 31, 2023 - Warren Buffett's favorite yardstick for stocks is signaling they're overvalued and could crash. The Buffett Indicator has surged to 171% as investors bet on AI, rate cuts, and a soft landing.

March 19, 2025 - The table below displays the total market cap-to-GNI (GDP) ratios for the world’s largest economies. This ratio, also known as the Buffett Indicator, can be used to assess a country’s stock market valuation by comparing its current level to historical averages, providing possible insight into potential future returns.

2 weeks ago - The Buffett Indicator measures the total U.S. stock market capitalization against the country’s GDP — essentially gauging if there’s a potential bubble, akin to the 1999 dot-com bubble (2).

The Buffett Indicator tool and history graph shows the current and past stock market capitalization to GDP ratio.