Search results
Results from the WOW.Com Content Network
The cyclically adjusted price-to-earnings ratio, commonly known as CAPE, [1] Shiller P/E, or P/E 10 ratio, [2] is a stock valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years of earnings (moving average), adjusted for inflation. [3]
The S&P 500's Shiller P/E ratio is based on average inflation-adjusted earnings over the trailing 10 years. Analyzing 10 years of earnings history smooths out the hills and valleys associated with ...
With the Dow and S&P 500 hitting At the same time, the S&P 500 was a sliver above 1,800 around 1:30 p.m. EST. The Shiller P/E Shows the Stock Market is Overvalued
Robert Shiller's plot of the S&P composite real price–earnings ratio and interest rates (1871–2012), from Irrational Exuberance, 2d ed. [1] In the preface to this edition, Shiller warns that "the stock market has not come down to historical levels: the price–earnings ratio as I define it in this book is still, at this writing [2005], in the mid-20s, far higher than the historical average
Robert Shiller's plot of the S&P 500 price–earnings ratio (P/E) versus long-term Treasury yields (1871–2012), from Irrational Exuberance. [1]The P/E ratio is the inverse of the E/P ratio, and from 1921 to 1928 and 1987 to 2000, supports the Fed model (i.e. P/E ratio moves inversely to the treasury yield), however, for all other periods, the relationship of the Fed model fails; [2] [3] even ...
The real 10-year rate equals the yield on 10-year TIPS, or treasury inflation protected securities. The recent jump in the long bond has driven the TIPS rate to 2.37%, the highest number in 20 ...
Price-earnings ratios as a predictor of twenty-year returns based on the plot by Robert Shiller (Figure 10.1, [18] [19]). The horizontal axis shows the real price-earnings ratio of the S&P Composite Stock Price Index as computed in Irrational Exuberance (inflation adjusted price divided by the prior ten-year mean of inflation-adjusted earnings ...
Case-Shiller’s 10-city index remained flat from October, rising 4.9 percent, and the 20-city index was up 4.3 percent, a nominal increase over the previous month’s 4.2 percent.