Shiller P/E ratio


The Shiller P/E ratio, or the cyclically-adjusted price-earnings ratio, is one of the most popular measures of stock market value. It's calculated by taking the S&P 500 and dividing it by the average of ten years worth of earnings.  If the ratio is above the long-term average of around 15, the stock market is considered expensive.

Today, the Shiller P/E is at 22.6.

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