CAPE Ratio = Current Price / Average Inflation-Adjusted Earnings (Last 10 Years) For example, if a stock is trading at $200 and the average inflation-adjusted earnings over the past 10 years is ...

The cyclically adjusted price/earnings (Cape) ratio popularised by Yale professor ... "fair value" following the 2008 financial crash (see chart above). However, no one has ever claimed that ...

If the ratio is above the long-term ... Credit Suisse's Andrew Garthwaite often runs this chart of average 3-year forward returns for a given level of CAPE. "We recognize that some investors ...