Real-time view of the Buffett Indicator using Total Market Cap and US GDP
As of April 2026, the Buffett Indicator is 214.0%, indicating the US stock market is significantly overvalued relative to GDP (total US market capitalization $69.5T versus GDP $32.5T). The Buffett Indicator is the ratio of total US stock market value to GDP, which Warren Buffett called probably the best single measure of where valuations stand.
Fetching real-time market data from financial APIs...
The Buffett Indicator is the ratio of total US stock market capitalization to gross domestic product (GDP). Warren Buffett described it as probably the best single measure of where valuations stand at any given moment. A higher ratio suggests the market is expensive relative to the size of the economy, and a lower ratio suggests it is cheap.
As a rough historical guide, readings below about 75% have been considered undervalued, around 75 to 115% fairly valued, and above roughly 135 to 150% significantly overvalued. These bands are approximate and have drifted higher over time as interest rates fell and US companies earned more revenue abroad, so the trend matters more than any single threshold.
No. It is a long-horizon valuation gauge, not a short-term timing tool. Elevated readings are associated with lower expected long-term returns rather than an imminent crash, and the market can stay expensive for years. Use it to calibrate expectations, not to predict tops and bottoms.
Yes — it shows the current, latest reading and refreshes automatically. The total US market capitalization and GDP that drive it come from the Federal Reserve's quarterly data, so the live value updates each quarter as new figures are released.