FTSE 100 CAPE Valuation in Dec 2024

Dec 21, 2025 - Market Valuations

On 1 December 2024, the FTSE 100 closed at 8,313 — nearly 15% below today’s level. CAPE ratios then hovered around 15x, right at historical averages. This provided a fair valuation backdrop for long‑term investors.

Valuation context

At 15x CAPE, expected real returns were ~6% annually, consistent with historical norms. Dividend yields were higher (~3.7%), offering attractive income. The market reflected caution amid global uncertainty, but valuations provided a margin of safety.

Quality investor implications

December 2024 was a more attractive entry point. Quality investors could accumulate resilient companies at fair prices, locking in higher yields and better forward returns. The discipline of buying when valuations are fair rather than stretched is central to quality investing.

Conclusion

The FTSE 100 at 8,313 represented fair value. For quality investors, that period offered a balanced opportunity to build positions in durable businesses at reasonable prices.

Premium content

The rest of this article is available to logged-in subscribers only.

To view this content, please sign up or log in.

Sign up Log in

Continue the discussion

Sign up or log in to leave a comment.

Sign up Log in

Colin - Dec 18, 2025

The FTSE 100 is now far higher than it was in 2024. What are your thoughts on its valuation in 2026?

Alice - Dec 18, 2025

Your conclusion is incredible. Fair value for this index is a deeply contrarian opinion.

Alice - Dec 18, 2025

I just wanted to comment again, to say how much this post has helped me.

Alice - Dec 18, 2025

This is a great post. The way you talk about valuation just makes so much sense to me.

Bob - Dec 18, 2025

I enjoyed reading this article because it’s both informative and approachable. The pacing is just right, and the examples help anchor the concepts. It feels polished and professional, which makes me trust the insights more. Definitely the kind of content that keeps me coming back for more.

Alice - Dec 18, 2025

This piece does a great job of presenting information in a structured way. Each section builds logically on the last, making the overall message easy to grasp. I also appreciate the professional tone, which adds credibility. It’s the kind of content that leaves you with something meaningful.

Alice - Dec 18, 2025

The clarity of this article stood out to me. It avoids unnecessary jargon while still covering important details. I also liked how the content connects abstract ideas to practical examples. That makes the insights more memorable and useful. A solid read that feels well worth the time.

admin - Dec 18, 2025

I found this article very engaging. The writing style is clear, and the flow makes complex ideas easier to digest. I especially liked the emphasis on long-term thinking, which is often overlooked. Overall, it’s a thoughtful piece that adds real value to the conversation.