Yardeni S&P 500 Target & Multiple Sensitivity Workbench

Model Parameters Direct Sliders

Forward P/E Multiple 18.6x

15.0x (Stressed) 18.6x (Revised) 19.8x (Prior) 22.0x (Overheated)

S&P 500 Price Target 7,900

6,500 7,900 8,400 9,500

10-Yr Bond Yield Risk Shift +50 bps

-100 bps (Easing) 0 bps (Neutral) +50 bps (Current) +150 bps (Spike)

Downturn Risk Multiplier (3-6m) 1.12x

1.00x (Baseline) 1.12x (Yardeni Factor) 1.50x (Severe)

Implied Forward EPS
$424.73
Target / P/E multiple

Target Delta (vs Prior)

-500 pts

-5.95%

P/E Compression

-1.2x

From 19.8x baseline

Yield Adjusted Price

7,710

-190 pts discount

Valuation Sensitivity Matrix (P/E Multiple vs Implied EPS) Simulated S&P 500 Price

P/E \ EPS	$400.00	$412.50	$424.73*	$435.00	$450.00

* Column $424.73 reflects Yardeni's implied operating EPS. The blue highlighted cell represents your active P/E selection.

Target Trajectory & Bond Yield Discount Band Chart.js Real-time Curve

Quantitative Synthesis & Findings Live Computed

Wall Street bull Ed Yardeni's downward revision to 7,900 from 8,400 reflects a multiple derating from 19.8x to 18.6x (-1.2x compression). Notably, the implied forward operating earnings power remains virtually constant (~$424.73 vs prior $424.24), demonstrating that this cut is fundamentally driven by rising bond yields and equity risk premia compression rather than an immediate collapse in projected corporate earnings.