Other
valuation metrics tell a similar story: Stocks are expensive, although it is not clear that they are yet in bubble territory.
Not exact matches
Apruzzese
told Barron's that he prefers real earnings yield, or earnings yield minus the rate of inflation, as a
valuation metric, rather than P / E ratios.
All
told,
metrics like P / E, PEG, PE 10, P / B, EBIT / EV and EBITDA / EV paint a good picture of when a stock is «on sale», especially when combined with historical average
valuation levels.
If the finding that stocks were priced at three times fair value in 2000 were an illusion, the P / E10 level (Shiller's
valuation metric) would
tell us nothing about where stock prices would be in 10 years or in 20 years.