2 ms·
nobody yet mentioned the Shiller CAPE yet, I think this discussion could benefit from some valuation talk. https://www.multpl.com/shiller-pe https://www.multpl
by banku_brougham 2y ago
nobody yet mentioned the Shiller CAPE yet, I think this discussion could benefit from some valuation talk.
https://www.multpl.com/shiller-pe https://www.multpl.com/shiller-pe
- triyambakam 2y agoCan you explain what that is and means?
- banku_brougham 2y agoSure. Cyclically Adjusted Price over Earnings. Its a metric developed by econ researcher Robert Shiller, meant to aid those long term investment strategies by quantifying the idea of 'value'. Using 10-years of earnings helps to sidestep a lot of the problems of P/E as a snapshot. As the time series helps to show, 10-year returns are highly correlated to the price paid for those corporate earnings.