Value Investing News

There are several ways to measure the market’s valuation. On television and other media outlets, analysts and market commentators will often refer to the Standard & Poor’s P/E Ratio. Others like Warren Buffett have used other metrics such as the percentage of total market cap (TMC) relative to the US GNP which he calls “probably the best single measure of where valuations stand at any given moment.” Another common method for investors to get an idea of current market valuations is the Shiller PE10.

• http://www.valueinvestinghq.com/816/a-look-at-the-shiller-pe10/ (66)