Currently, the Shiller P/E is at 24. While this certainly looks expensive, it would be a mistake to assume that stocks are doomed to crash until the ratio rights itself.

In short, the Shiller PE is the price of the stock market divided by the average of ten years worth of earnings. If the ratio is above the long-term average, the stock market is considered expensive.

The P/E 10 ratio presents long-term earnings more accurately than other measurements by smoothing earnings over a business cycle. ... ratio or the Shiller PE ratio. ... 90 Year Historical Chart." ...

The Shiller PE ratio was about 32.6 at the end of September 2018. ... The chart below shows the Shiller PE since 1881 relative to the 10-year rolling average and the S&P 500 levels.

Adding on a line for Shiller P/E allows you to compare the two directly on the chart. Looking at the Shiller P/E ratio line, you can see that the stock is actually not that high comparatively.

Historically, readings over 20 for the Shiller PE ratio just haven't been good for stocks. You have seen when it has broken above 20, and specifically, even 30, the market has gone on to decline.

Although the Shiller P/E ratio was only introduced roughly three decades ago, it's been back-tested all the way to 1870. As you can see in the following 153-year chart, the Shiller P/E has been ...

The CHART OF THE DAY compares what’s known as the cyclically adjusted price-earnings ratio, compiled by Yale University Professor Robert Shiller, with profit figures that Mehta highlighted ...

The Shiller PE ratio, or the cyclicallyadjusted priceearnings ratio, is one of the most popular measures of stock market value. Its calculated by taking the SP 500 and dividing it by the average ...

The four valuation metrics are the Crestmont PE, the cyclical PE10 (similar to the Shiller PE), the Q ratio, and the S&P composite from its regression. Note the far-right number on the chart: 84%.

In simpler terms, if we were to compare Shiller's view and Lynch's view and imagine a market where the ratio between stock prices and earnings remained constant (so that the P/E ratio and earnings ...

Lately, every stock market watcher has been keeping a close eye on the Robert Shiller's cyclically-adjusted price-earnings (CAPE) ratio. CAPE is calculated by taking the S&P 500 and dividing it by ...