Shiller P E Ratio (CAPE)

Shiller P/E Ratio (CAPE Ratio) Practical Examples

In 1996, economist Robert Shiller introduced a novel approach to analyzing the stock market. He called it the Shiller P/E Ratio, or CAPE Ratio. This tool helps us determine if stocks are priced fairly by examining their earnings over the past 10 years, adjusted for inflation. Unlike the regular P/E ratio, which only considers one…