CAPE ratio

Concept

Cyclically Adjusted Price-to-Earnings ratio, used to illustrate the disconnect between stock market valuations and the real economy. A high CAPE ratio, like the current one at 44, indicates euphoria and potential for a bubble.

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Videos Mentioning CAPE ratio

This Is Why You Can't Find Work Right Now

This Is Why You Can't Find Work Right Now

Tom Bilyeu

Cyclically Adjusted Price-to-Earnings ratio, used to illustrate the disconnect between stock market valuations and the real economy. A high CAPE ratio, like the current one at 44, indicates euphoria and potential for a bubble.