File:Price-Earnings Ratios as a Predictor of Ten-Year Returns (Shiller Data).png

Summary

Price-Earnings Ratios as a Predictor of Ten-Year Returns: A representation of the plot by <a href="https://en.wikipedia.org/wiki/Robert_Shiller" class="extiw" title="w:Robert Shiller">w:Robert Shiller</a> (Figure 10.1 from Shiller, Robert (2005) <a href="//commons.wikimedia.org/w/index.php?title=Irrational_Exuberance_(book)&action=edit&redlink=1" class="new" title="Irrational Exuberance (book) (page does not exist)">Irrational Exuberance (2d ed.)</a>, <a href="//commons.wikimedia.org/w/index.php?title=Princeton_University_Press&action=edit&redlink=1" class="new" title="Princeton University Press (page does not exist)">Princeton University Press</a> <a href="//commons.wikimedia.org/wiki/Special:BookSources/0691123357" class="internal mw-magiclink-isbn">ISBN 0-691-12335-7</a>) using data from <a rel="nofollow" class="external text" href="http://irrationalexuberance.com/shiller_downloads/ie_data.xls">irrationalexuberance.com/shiller_downloads/ie_data.xls</a>. The horizontal axis shows the real price-earnings ratio of the S&P Composite Stock Price Index as computed in Irrational Exuberance (inflation adjusted price divided by the prior ten-year mean of inflation-adjusted earnings). The vertical axis shows the geometric average real annual return on investing in the S&P Composite Stock Price Index, reinvesting dividends, and selling ten years later. Data from different twenty year periods is color-coded as shown in the key. See also <a href="//commons.wikimedia.org/wiki/File:Price-Earnings_Ratios_as_a_Predictor_of_Twenty-Year_Returns_(Shiller_Data).png" title="File:Price-Earnings Ratios as a Predictor of Twenty-Year Returns (Shiller Data).png">Image:Price-Earnings Ratios as a Predictor of Twenty-Year Returns (Shiller Data).png</a>.

Licensing

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