If S&P 500 earnings keep growing but the market stays flat, when will the P/E ratio return to normal?

Let’s say the stock market continues going sideways for a while, but earnings of S&P 500 companies keep growing at their usual pace. When would the P/E ratio drop back to its historical average?

Right now, the S&P 500 P/E ratio is around 22–24, while the long-term average is 16–17. If earnings grow at 6–8% per year (which is historically normal), it would take 5–7 years for the P/E ratio to fall back to historical levels—assuming stock prices don’t move.

Basically, if we’re in a sideways market but earnings keep climbing, valuations will gradually normalize by the end of the decade. So even if prices don’t rise, long-term investors still “benefit” from earnings growth bringing fundamentals back in line.

Is this correct? What do you think?