The CAPE (Cyclically Adjusted Price-to-Earnings) or Shiller PE ratio is a popular valuation measure used by investors to assess whether a stock or index is over or undervalued relative to its historical earnings. Unlike the traditional P/E ratio, the CAPE ratio smooths earnings over ten years, adjusting for inflation and providing a more stable and long-term view...
Our Implementation of the famous Shiller PE Ratio (aka C yclically A djusted P rice-to- E arnings Ratio) a long-term valuation indicator for the S&P 500.
Calculation: Share price divided by 10 - year average, inflation - adjusted earnings
The indicator works on the M and 12M timeframe and has a built-in moving average that supports an upper and lower...