Homrich & Berg says S&P 500 valuation hinges on consensus 27.8% earnings growth forecast

Homrich & Berg flagged a widening valuation split that leaves US equities dependent on consensus earnings forecasts. S&P 500 trades at 24.7x trailing earnings versus 19.2x forward, a spread 2.2 standard deviations above the post-1995 average. Consensus expects 27.8% earnings growth; the report warned that missing the bar could trigger volatility or a pullback. Equal-weighted S&P 500 looks cheaper at 18.3x trailing and 16.1x forward, both below five-year averages. Russell 2000 is 55.8% cheaper than the S&P 500 on forward sales despite a 12.5% year-to-date rally. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Homrich & Berg Inc published the original content used to generate this news brief on October 13, 2026, and is solely responsible for the information contained therein. (C)