Friday , 14 December 2018


Tag Archives: market valuation

Note: Current Cyclically Adjusted Price Earnings Ratio Says S&P 500 is Over-valued

The Cyclically Adjusted Price Earnings Ratio, abbreviated as CAPE, or the more precise P/E10, closely tracks the real (inflation-adjusted) price of the S&P Composite. After dropping to 13.3 in March 2009, the P/E10 has rebounded to 23.0. The historical average is 16.39 raising concerns about the current price level of the S&P Composite. Let me explain. Words: 1298

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