The data reached an all-time high of 34.210 in Sep 2016 and a record low of 7.410 in Mar 2009. Here it is again:The chart is an attempt to show a range of reasonable values that CAPE could have had at any point in the past.

However, the headline number can be very misleading.Looking at the FTSE 100 P/E ratio should give a snapshot of how expensive the UK stock market is at any one moment, but in actual fact the FTSE 100’s P/E ratio has fluctuated greatly over time. Inflation is currently indexed to 100 points in 2015, and with that information we can calculate the FTSE 100's ten-year inflation adjusted earnings:With these updated inflation-adjusted earnings we can calculate CAPE:ten-year average inflation adjusted earnings = 485 index pointsFTSE 100 CAPE = 7542 / 485 = 15.6So the CAPE ratio at the start of the year was 15.6, but this doesn't really tell us very much unless we compare it to CAPE's long-term average.If CAPE is currently below average, then its probably cheap, although how cheap depends on how far it is below average. In other words, a range from 8 to 32.The chart shows the range of FTSE 100 values that CAPE range would have produced, with red showing where the FTSE 100 would be if CAPE was 32 (i.e. In particular, the content does not constitute any form of advice, recommendation, representation, endorsement or arrangement by FT and is not intended to be relied upon by users in making (or refraining from making) any specific investment or other decisions. For example, buying the The NASDAQ is definitely not a cheap market, but holders believe this valuation premium is justified because of its superior earnings outlook.But are you at risk of overpaying for the growth? 'topstocktable.com' (London FTSE-100 by PE Ratio) Table 1 - FTSE 100 Sorted by PE Ratio. This is partly due to the cyclical earnings of the A reliable place to source key statistics for financial markets is Bloomberg’s website. It works like this:The long-term average CAPE is 16 if you ignore the dot-com bubble, and history suggests that CAPE spends almost all of its time within a range from about half to double that average. The next thing we need is CPI inflation for 2019, which we can get from the Office for National Statistics website. LON-Tab1-1 (topstocktable.com) The current value of 15.6 is obviously below that, so the FTSE 100 is cheap, right?Looking at CAPE data for multiple indices globally over many decades, I think a ratio of 16 is, for now, a better estimate of the true long-term average.A dividend yield of 4.4% for the FTSE 100 is below the average yield of 3.6%, so on a dividend yield basis the FTSE 100 also looks somewhat cheap.In this article, I calculate the cyclically adjusted PE ratio To get around that, CAPE uses ten-year average inflation-adjusted earnings, which strips out most of the volatility that comes with annual earnings. The forward price/earnings ratio on the FTSE is about 26 times, which is close to its five-year average. Please sign in or register.All markets data located on FT.com is subject to the All content on FT.com is for your general information and use only and is not intended to address your particular requirements. The table below lists the CAPE Ratio & P/E (TTM) of the FTSE 100 and FTSE 250 indices.The current Shiller PE of the FTSE 100 is 13.22 (6/30/2020), considerable lower than the corresponding ratio of FSE 250. Following on from my recent update of the FTSE 100’s CAPE ratio, it’s now time to look at the FTSE 250. The table below lists the CAPE Ratio & P/E (TTM) of the FTSE 100 and FTSE 250 indices. This information has been prepared by IG, a trading name of IG Markets Limited. The current value of 15.6 is obviously below that, so the FTSE 100 is cheap, right?The last 30 years includes the dot-com bubble, which was the largest stock market bubble in history. Accordingly, BlackRock makes no representations or warranties regarding the advisability of investing in any product or service offered by IG Markets Limited or any of its affiliates. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. All prices and dividends are quoted in pence. The FTSE 100 has a trailing PE ratio of around 16. And that's exactly what happened.In contrast, at the start of 2009 most of the likely range of values lay above the FTSE 100's actual CAPE value at the time of 12, so the likely (but not guaranteed) direction of travel for CAPE and the FTSE 100 was upward. Here's how I do it:Unfortunately, the World Markets report is only available for today and not for historic dates, so you have to download it on the day you want your snapshot.I downloaded the FT World Markets report on Jan 1st and this is what it said:From there it's easy to calculate the FTSE 100's earnings for 2019:FTSE 100 2019 earnings = 7542 / 16.45 = 458.5 index pointsThe next thing we need is CPI inflation for 2019, which we can get from the According to the ONS, CPI inflation in 2019 was 1.7%. At each review some companies will exit and other will enter, this impacts share price and is a busy day of trading. The process is the same as it was for the FTSE 100: Go to the FT World Markets at a Glance report (PDF) Note the index’s price and PE ratio And if it's close to average then it's close to fair value. The FTSE 100's actual value is overlaid in black.For example, in 1999 when CAPE was above 30, almost all the reasonable CAPE values lay below 30, so it was very likely (although not inevitable) that CAPE would fall and that the FTSE 100 would fall with it. Further, BlackRock, Inc. and its affiliates including, but not limited to, BlackRock Investment Management (UK) Limited, are not affiliated with IG Markets Limited and its affiliates. View stock market news, stock market data and trading information.

FTSE provides daily P/E Ratio. Share names are commonly used descriptive names.


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