Turmoil in the global markets sent U.S. equities tumbling this week, with the S&P 500 Index and Dow Jones industrial average posting their worst beginning to a year in history and shaving trillions off major equity indexes.
Despite a sell-off that sent the Dow and the Nasdaq Composite into correction territory, one widely followed market participant told CNBC that stocks are still expensive.
"I don't think we're going to be able to maintain this average multiple," Carter Worth, head of technical analysis at Cornerstone Macro told CNBC's "Fast Money" this week. He referred to the S&P's current price to earnings (P/E) multiple, a common measure to gauge the market's value.
As the stock market has been in a record-breaking bull market for the last several years, valuations have become sky-high: The S&P 500 sports a trailing multiple of 17.4 times earnings.
Worth pointed to what he called some of the more expensive stocks in the market right now — Nike, Home Depot, Costco, Under Armour, Monster Beverage and McDonald's. Those names sport P/Es of 29, 24, 30, 79, 48 and 24, respectively — examples of just how pricey stocks have become.