Warren Buffett’s favorite valuation indicator, known as the Buffett Indicator, suggests that the US stock market is relatively cheap. The indicator measures the ratio of the total value of the US stock market to the dollar value of US gross domestic product. It has dropped to its lowest level since early September, despite recent market gains. This signal could mean that stocks have more room to run in the future.
Source: https://www.bloomberg.com/news/articles/2025-05-02/warren-buffett-s-favorite-valuation-indicator-flashes-buy-signal