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Small-cap stocks are trading at a historic discount to their large-cap peers.

Despite recent gains in the benchmark Russell 2000 index, small-cap stocks are trading at a historically large discount to large-cap equities.

The large-cap S&P 500 index is trading at over 22 times forward earnings estimates versus less than 16 times for the small-cap index.

This represents the largest spread between small-cap and large-cap stocks since 2001 when the U.S. market was in the midst of the dotcom bubble bursting.

Analysts say that the data shows small-cap stocks remain cheap by historic measures.

Small-cap stocks are typically securities that have a market capitalization of $10 billion U.S. or less and include %TheGap (NYSE: $GAP ), %AppliedDigital (NASDAQ: $APLD ), and %PiperSandler (NYSE: $PIPR ).

After lagging other U.S. indices for the better part of a decade, the Russell 2000 index of small-cap stocks has rallied in September and recently hit an all-time high of 2,488.84.

It was the first new record high for the Russell 2000 index in four years.

However, even with an all-time high reached, small-cap stocks continue to underperform large-caps and remain cheap by comparison.

The Russell 200 index is up 9% this year versus a 13% gain in the benchmark S&P 500 index and a 17% year-to-date increase in the technology-heavy Nasdaq Composite index.

Many analysts continue to forecast a rotation of investor capital into small-cap names, with some evidence pointing to a catch-up rally now underway.

So called "value investors" are seeking out cheaper equities with large-cap stocks at all-time highs.

U.S. Federal Reserve Chair Jerome Powell recently said that stocks valuations are expensive, adding his voice to a growing chorus of concern over large-cap equity prices.