2010  2012  2013  2014  2015  2016  Figure 6a: Forward Price-to-Earnings Ratio of S&P 500 Firms  Figure 6b: Equity Risk Premium  Percent 14  28  12 10  23  8 6  18  4 2  Historical Median  13  0 -2  8 1986  1989  1992  1995  1998  2001  2004  2007  2010  2013  2016  Note: Aggregate forward price-to-earnings ratio of S&P 500 firms.
Based on expected earnings for 12 months ahead. Source: Thomson Reuters Financial. -4 1986  1989  1992  1995  1998  2001  Source: Federal Reserve Board staff projection.