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CAPE No Fear. An Alternative Cyclically Adjusted P/E Ratio

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NIPA profits are less volatile than GAAP earnings, potentially improving their usefulness as a long-term valuation metric. The NIPA Shiller P/E has been modestly better than the NIPA P/E in recent years, but a forward/trailing EPS combo has been better. The stock market is expensive based on most P/E ratios.

Ned Davis Research | Equities | U.S. Focus | Weekly

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