The Intrinsic Value of the S&P 500 Index

US GDP Moody’s Aaa S&P 500 Brock Value Upside to BV
$16.010 t 3.70% 1582.24 2319.32 +47%

Brock Value Latest 24 Months

These are the latest numbers, updated to Friday, April 26. With US GDP at $16.01 trillion and Moody’s Aaa bonds yielding 3.70%, the intrinsic value of the S&P 500 index as measured by BV is 2319.32.

By comparison, the S&P closed at 1582.24 on April 26, 32% below fair value. Click the chart to enlarge.

Understanding Brock Value charts
The red and green lines found on many of the BV charts on this site are 0.33 standard deviations over and under BV. These lines fence in the normal range of the market. When the market is above the red line, ten-year returns tend to be lower than average. When the market is below the green line, ten-year returns tend to be higher than average.
brock value 1960 to 2012

The red and green lines are one-third of a standard deviation from BV, the white line. Click image to enlarge.


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