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<p id="isPasted">The cyclically adjusted price-to-earnings ratio, commonly known as CAPE, Shiller P/E, or P/E 10 ratio, is a stock valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years of earnings (moving average), adjusted for inflation. As such, it is principally used to assess likely future returns from equities over timescales of 10 to 20 years, with higher than average CAPE values implying lower than average long-term annual average returns.</p><p class="forexqa-img-container"><img src="https://prod-forexqna.s3.amazonaws.com/uploads/froala_editor/images/1749619782777.png" width="450" height="153" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/e/ea/S%26P_500_Shiller_P-E_Ratio.png/960px-S%26P_500_Shiller_P-E_Ratio.png 1.5x" data-file-height="1740" style="border-width: 0.727273px; border-style: solid; border-color: rgb(200, 204, 209); border-image: none 100% / 1 / 0 stretch; background-color: rgb(255, 255, 255); color: rgb(32, 33, 34); height: auto; max-width: calc(100% - 8px); width: 730px;" class="fr-fic fr-dii fr-draggable forexqa-img">S&P 500 Shiller P/E ratio compared to trailing 12 months P/E ratio</p><p>The ratio was invented by American economist Robert …</p>