Sentences with phrase «adjusted valuation measure»

For a much more academic and thorough method of utilizing the CAPE Ratio I refer you to Wes Gray and Jack Vogel's more recent work on this particular subject in their paper entitled On The Performance of Cyclically Adjusted Valuation Measures.

Not exact matches

Moderate interest rates were associated with a whole range of subsequent returns over the following decade, and we know that those outcomes were 90 % correlated with the level of valuations at the beginning of those periods (on reliable measures such as market cap / GDP, price / revenue, Tobin's Q, the margin - adjusted Shiller P / E, and others we've presented over time - see Ockham's Razor and the Market Cycle).

At Berkshire Hathaway's recent annual shareholders meeting, an investor asked Buffett about the relevance of two popular measures of stock market value: 1) market cap - to - GDP, which Buffett once heralded as «probably the best single measure of where valuations stand at any given moment» and 2) the cyclically - adjusted price - earnings ratio (CAPE), which was made famous by Nobel prize winner Robert Shiller and was seen as accurately predicting the dot - com bubble and the housing bubble.

These measures include the S&P 500 price / revenue ratio, the Margin - Adjusted CAPE (our more reliable variant of Robert Shiller's cyclically - adjusted P / E), and MarketCap / GVA — the ratio of nonfinancial market capitalization to corporate gross value - added, including estimated foreign revenues — which is easily the most reliable valuation measure we've ever created or tested, among scores of alterAdjusted CAPE (our more reliable variant of Robert Shiller's cyclically - adjusted P / E), and MarketCap / GVA — the ratio of nonfinancial market capitalization to corporate gross value - added, including estimated foreign revenues — which is easily the most reliable valuation measure we've ever created or tested, among scores of alteradjusted P / E), and MarketCap / GVA — the ratio of nonfinancial market capitalization to corporate gross value - added, including estimated foreign revenues — which is easily the most reliable valuation measure we've ever created or tested, among scores of alternatives.

Longer - term valuation measures — notably cyclically adjusted earnings (CAPE)-- are even more elevated and suggest low - to mid-single digit returns over the next five years.

In the early 1920s, stock market valuation was comparatively low, as measured by the inflation - adjusted present value of future dividends.

This is true whether you measure S&P 500 valuation by the cyclically - adjusted price - to - earnings ratio, the market - capitalization - to - GDP ratio, the price - to - book - value ratio, the average dividend yield, or most other valuation metrics.

Valuation measures like Yale professor Robert Shiller's Cyclically Adjusted P / E Ratio (CAPE) also warn that stocks are a bit pricey, which only heightens investors» concerns.

A leading academic, Robert Shiller of Yale, has, however created a metric to measure the relative valuation of the market — the CAPE — cyclically adjusted price earnings ratio.