Ready for today’s investment pop quiz? Which of the following is the actual P/E ratio for the Russell 2000 IndexRUT, -0.07 the well-known benchmark for the small-cap sector of the stock market? a. 25.6 b. 19.9 c. 78.7 Believe it or not, the correct answer is “c.” That means that the small-cap sector is not only hugely overvalued in its own right, it is in relative terms as well. As you can see from the chart below, the Russell 2000’s true P/E today is higher than it was at either the top of the internet bubble or the 2007 bull market peak. via