Buffett Indicator Hits Record 232.5%, Signals U.S. Stock Market Overvaluation Since 1970

According to GuruFocus data, the Buffett Indicator—Warren Buffett's preferred valuation metric—reached approximately 232.5% as of June 2026, marking its highest level since records began in 1970. The indicator has surged 13% from its March 30 low, entering what analysts describe as the "severely overvalued" zone and signaling a potential risk of modest negative returns for U.S. equities over the next 12 months.

Meanwhile, Goldman Sachs strategist Ben Snider's latest research shows the enterprise value-to-sales ratio of stocks approaching levels seen only during the dot-com bubble era, as rapid market gains fuel investor concerns about whether the current bull run, largely driven by artificial intelligence enthusiasm, may be overheating.