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Cyclically adjusted price-to-earnings ratio - Wikipedia

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The cyclically adjusted price-to-earnings ratio (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] As such, it is principally used to assess likely future returns from equities over timescales of 10 to 20 years, with higher than average CAPE values implying lower than average long-term annual average returns. The ratio was invented by American economist Robert J. Shiller. The ratio is used to gauge whether a stock, or group of stocks, is undervalued or overvalued by comparing its current market price to its inflation-adjusted historical earnings record. It is a variant of the more popular price to earning ratio and is calculated by dividing the current price of a stock by its average inflation-adjusted earnings over the last 10 years. Using average earnings over the last decade helps to smooth out the i

Cyclically adjusted price-to-earnings ratio - Wikipedia Jump to content From Wikipedia, the free encyclopedia Stock market valuation measure Shiller Index on S&P 500 , updated to June 2026 The cyclically adjusted price-to-earnings ratio ( 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 ] As such, it is principally used to assess likely future returns from equities over timescales of 10 to 20 years

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