| The Shiller PE ratio was developed by Robert Shiller and popularized during the Dotcom Bubble when he argued that equities were highly overvalued. This metric is a variant of the more popular price-to-earnings ratio. It is calculated by dividing the current price of a stock by its average inflation-adjusted earnings over the last ten years. The higher the Shiller PE ratio, the more overvalued the equity is historically. The lower the ratio, the more undervalued the equality is historically. |
