Shiller PE ratio
Properties
tags
finfin/theory
created
15.12.2024, 08:36
modified
06.09.2026, 10:02
published
Empty
topics
Technical Analysis, Market Indicators, CAPE Ratio
authors
Jakub
ai-assisted
No
$$ \text{CAPE Ratio} = \frac{\text{Share Price}}{\text{10-year average, inflation-adjusted earnings}} $$The CAPE ratio is a valuation measure that uses real earnings per share (EPS) over a 10-year period to smooth out fluctuations in corporate profits that occur over different periods of a business cycle.
The CAPE ratio, an acronym for cyclically adjusted price-to-earnings ratio, was popularized by Yale University professor Robert Shiller. It is also known as the Shiller P/E ratio.