What is the Shiller p/e or CAPE ratio?

In this video, Ed Bowsher looks at how the Shiller p/e ratio works (also known as the cyclically adjusted p/e or Cape ratio), and when it can be most useful in determining value.

The price/earnings ratio is probably the most widely used valuation ratio in investment, but it does have many flaws.

In this video, Ed Bowsher looks at how theShiller p/e ratio (also known as the cyclically adjusted p/e or Cape ratio) gets around these problems, and when it can be most useful in determining value.

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