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PEses US Stock Market Valuation

This price earnings ratio uses the inflation adjusted stock price and simple exponential smoothing of inflation adjusted earnings. It is similar to the PE ratio Robert Shiller uses in his book Irrational Exuberance which is sometimes called PE10 or CAPE, meaning cyclically adjusted price earnings ratio.

A PE ratio measures how much people are willing to pay for a dollar of earnings.
Historically a high PE means the stock market is overvalued while a low PE suggests under valuation.