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Lagged P/E Ratios: Shiller Cape vs NIPA

Posted By Barry Ritholtz On October 30, 2013 @ 12:02 pm In Data Analysis,Earnings,Valuation | Comments Disabled

click for ginormous charts
shiller cape [1]
NIPA  PE [2]
Source: JP Morgan


JP Morgan observes: “Shiller P/E shows the market to be overvalued, but not as extreme if you use the NIPA data.”

I’ve never used the NIPA data, so I have no real opinion on it.¬† The two charts look directionally similar, but different in terms of magnitude.

For those of you bulls in search of some valuation confirmation bias, NIPA is your best bet.




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J.P. Morgan Funds October 30, 2013

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[1] Image: http://www.ritholtz.com/blog/wp-content/uploads/2013/10/shiller-cape.png

[2] Image: http://www.ritholtz.com/blog/wp-content/uploads/2013/10/NIPA-PE-.png

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