Real S&P 500 TRCAPE - Monthly

Chart Description

This chart shows the monthly Total Return Cyclically Adjusted Price-to-Earnings ratio (TRCAPE) for the real (inflation adjusted) S&P 500. TRCAPE is a stock valuation measure created by economist Robert Shiller. Unusually high/low TRCAPE values are intended to suggest that the stock is over/undervalued. The horizontal gray line is the average of the P/E values. The colored horizontal lines represent one and two standard deviations from the average. By definition, around 68% of the data points are within one standard deviation of the average and 95% of the data points are within two standard deviations of the average.

This chart is the same as Real S&P 500 CAPE - Monthly except that the S&P 500 price and earnings have been adjusted for reinvestment of all dividends. TRCAPE is calculated by taking the ratio of Real S&P 500 Total Return Price - Monthly and a dividend reinvestment adjusted version of the rolling average of earnings in Real S&P 500 Earnings with 10Y Rolling Average - Monthly AR.

Relevant Links

mccormick-charts.com: Real S&P 500 CAPE - Monthly, Real S&P 500 Total Return Price - Monthly, Real S&P 500 Earnings with 10Y Rolling Average - Monthly AR

Wikipedia: cyclically adjusted price-to-earnings ratio , standard deviation

Other Links: Robert Shiller's data

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