Short
CAPE Ratio > Shiller P/E Ratio
The Shiller P/E Ratio helps investors understand whether the stock market as a whole is overvalued or undervalued. It is calculated as the current price divided by the average inflation-adjusted earnings per share (EPS) over the past 10 years.
We are currently in one of the most overvalued stock markets, with the Shiller P/E Ratio at 32.61, a level not seen since the late 1990s. During the dot-com rally of tech stocks in the US, the Shiller P/E Ratio reached 44.19. At that time, this high ratio suggested that the market was in a bubble. Are we now in an AI bubble?
We are currently in one of the most overvalued stock markets, with the Shiller P/E Ratio at 32.61, a level not seen since the late 1990s. During the dot-com rally of tech stocks in the US, the Shiller P/E Ratio reached 44.19. At that time, this high ratio suggested that the market was in a bubble. Are we now in an AI bubble?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.