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CAPE ratio

Discussion in 'Fundamental Analysis' started by jignesh_acharya, Aug 31, 2014.

  1. jignesh_acharya

    jignesh_acharya Active Member

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    what is Cape ratio? How it can be calculated for a stock? How reliable it is?
    Can you give example calculation of one Indian stock?
     
    jignesh_acharya, Aug 31, 2014
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  2. shabbir

    shabbir Administrator Staff Member

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    Source - http://www.investopedia.com/terms/p/pe10ratio.asp
     
    shabbir, Sep 1, 2014
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  3. jignesh_acharya

    jignesh_acharya Active Member

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    Means we have to get the average EPS over 10 years and then adjust with inflation ..
    How? multiply with CPI?? or divide by CPI?
     
    jignesh_acharya, Sep 1, 2014
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  4. shabbir

    shabbir Administrator Staff Member

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    Not sure because there is very little information available on Cape Ratio and I don't use it.
     
    shabbir, Sep 1, 2014
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