Stock Market Valuations Hit 40% EV/Sales Ratios in 2026

In 2026, the percentage of stocks with enterprise value-to-sales (EV/sales) ratios above 10x has risen to nearly 40%, exceeding the dot-com bubble peak of approximately 35% in 2000. Additionally, stocks trading at EV/sales above 20x now represent around 13% of total US equity market capitalization, higher than the 15% peak during the dot-com era. These valuation levels indicate a significant premium that investors are willing to pay, potentially signaling an overstretched market. The sustainability of this growth in sales will be critical to maintaining investor confidence.