https://wiki-dev.treasurers.org/w/index.php?action=history&feed=atom&title=Cyclically_Adjusted_Price_to_Earnings_ratio 2026-05-19T02:21:13Z Revision history for this page on the wiki MediaWiki 1.40.0 https://wiki-dev.treasurers.org/w/index.php?title=Cyclically_Adjusted_Price_to_Earnings_ratio&diff=13352&oldid=prev 2021-03-10T14:15:34Z

<p>Add link.</p> <table style="background-color: #fff; color: #202122;" data-mw="interface"> <col class="diff-marker" /> <col class="diff-content" /> <col class="diff-marker" /> <col class="diff-content" /> <tr class="diff-title" lang="en-GB"> <td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td> <td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 14:15, 10 March 2021</td> </tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l62">Line 62:</td> <td colspan="2" class="diff-lineno">Line 62:</td></tr> <tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>* [[PEG ratio]]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>* [[PEG ratio]]</div></td></tr> <tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>* [[Price to earnings ratio]]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>* [[Price to earnings ratio]]</div></td></tr> <tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">* [[Profit after tax]]</ins></div></td></tr> <tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>* [[Prospective]]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>* [[Prospective]]</div></td></tr> <tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>* [[Ratio analysis]]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>* [[Ratio analysis]]</div></td></tr> <!-- diff cache key acta01_wikidev:diff::1.12:old-13351:rev-13352 --> </table>

imported>Doug Williamson https://wiki-dev.treasurers.org/w/index.php?title=Cyclically_Adjusted_Price_to_Earnings_ratio&diff=13351&oldid=prev 2021-02-25T22:53:50Z

<p>Create page. Source: CFI webpage https://corporatefinanceinstitute.com/resources/knowledge/finance/cape-ratio/#:~:text=The%20CAPE%20Ratio%20(also%20known,Financial%20Analysts</p> <p><b>New page</b></p><div>(CAPE). <br /> <br /> The CAPE ratio compares the equity value of a company with its averaged adjusted accounting earnings (profit after tax).<br /> <br /> <br /> It is a variant on the Price earnings ratio (PE ratio).<br /> <br /> While the PE ratio is calculated as:<br /> <br /> PE ratio = Current equity value &amp;divide; Earnings<br /> <br /> <br /> the CAPE adjusts the Earnings figure with the aim of providing a broader and longer term view of profitability.<br /> <br /> <br /> The earnings figure for the CAPE ratio is the average of the inflation-adjusted earnings for the previous 10 years:<br /> <br /> <br /> CAPE ratio = Current equity value &amp;divide; Average inflation-adjusted earnings for previous 10 years<br /> <br /> <br /> :&lt;span style=&quot;color:#4B0082&quot;&gt;'''Example'''&lt;/span&gt;<br /> <br /> :Company A's total equity value is $600m and its relevant average inflation adjusted earnings are $50m, <br /> <br /> :The CAPE ratio = $600m / $50m <br /> <br /> :'''= 12'''<br /> <br /> <br /> The Price to earnings ratio reflects the market's perception of the risk and the future growth prospects of the company.<br /> <br /> A higher CAPE ratio generally indicates that the market perceives:<br /> *better growth<br /> *lower risk<br /> *or both<br /> <br /> Lower CAPE ratios suggest lower growth (or indeed decline), higher risk, or both.<br /> <br /> <br /> CAPE ratios can also be used as a very simple estimation or comparison model, for corporate valuation.<br /> <br /> <br /> Simplistically, shares trading on low CAPE ratios might be perceived as relatively cheap. Similarly, shares trading on higher PE ratios might be seen as relatively expensive.<br /> <br /> A better use of CAPE ratios is as a sense-check of the results and insights from other valuation methods. <br /> <br /> <br /> Also known as the ''Shiller PE ratio'', after its originator Robert Shiller.<br /> <br /> <br /> == See also ==<br /> * [[Bootstrap effect]]<br /> * [[Capitalisation]]<br /> * [[Earnings]]<br /> * [[Earnings multiples]]<br /> * [[Earnings per share]]<br /> * [[Earnings yield]]<br /> * [[EBITDA multiple]]<br /> * [[Historic]]<br /> * [[Multiples valuation]]<br /> * [[PEG ratio]]<br /> * [[Price to earnings ratio]]<br /> * [[Prospective]]<br /> * [[Ratio analysis]]<br /> <br /> [[Category:The_business_context]]<br /> [[Category:Corporate_finance]]<br /> [[Category:Investment]]<br /> [[Category:Long_term_funding]]<br /> [[Category:Financial_products_and_markets]]</div>

imported>Doug Williamson