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Ganapati Solutions Team
Apr 30, 2024 4:58PM ET
Investing decisions should be based on a comprehensive analysis of various factors, including but not limited to historical data, current market conditions, and future growth prospects. Let's consider the historical data and the current P/E ratio of the NASDAQ 100 to assess the situation: - The current P/E ratio of the NASDAQ 100 is **31.66**¹, which is higher than the historical average. For instance, the P/E ratio was around **21.73** at the end of 2019 and **22.73** at the end of 2020². - The P/E ratio has seen a significant increase from around **26.27** on February 16, 2024, to **31.66** on April 30, 2024¹. - The Invesco NASDAQ 100 ETF (QQQM) closed at **$178.06** on April 29, 2024, and had a closing price of **$174.65** five days prior⁵. Considering the high P/E ratio, it suggests that the market may expect higher earnings growth from the companies within the NASDAQ 100. However, a high P/E ratio can also indicate that the index is overvalued relative to its historical average,
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