Shiller CAPE Ratio (P/E10)
The Cyclically Adjusted Price-to-Earnings ratio uses 10 years of inflation-adjusted earnings to smooth out business cycle fluctuations. Developed by Nobel laureate Robert Shiller, it helps identify periods of market overvaluation and undervaluation.
Current
39.51
Average
17.65
Median
16.60
Range
5 - 44
Data from Jan 1881 to Oct 2025 (1738 data points)
What is the CAPE Ratio?
The CAPE ratio, or Shiller P/E, is calculated by dividing the current S&P 500 price by the average of 10 years of inflation-adjusted earnings. This longer-term perspective helps filter out short-term earnings volatility.
- •Historical Average: ~16-17 over the past 140 years
- •Above 25: Typically indicates overvaluation
- •Below 15: May indicate undervaluation
How to Interpret CAPE
The CAPE ratio is a long-term valuation metric, most useful for forecasting 10-year forward returns rather than timing short-term market movements.
Low CAPE (< 15)
Historically associated with higher future returns
Medium CAPE (15-25)
Near historical average, moderate future returns expected
High CAPE (> 25)
Historically associated with lower future returns
Data Source & Disclaimer
Data courtesy of Robert Shiller, Yale University. Updated monthly based on Professor Shiller's published dataset.
This information is for educational and analysis purposes only. Not investment advice. Past performance does not guarantee future results. Consult a financial professional before making investment decisions.