Are stocks cheap right now?
A free, interactive view of the world's stock-market valuation — the Global CAPE ratio against decades of its own history, plus the whole-world trailing multiples.
Current Global CAPE
As of August 2026 · ratio
Source: Market-cap-weighted blend of single-country CAPEs
By Dominic Roe · Data Engineer & Business Intelligence Developer
The short answer
No — historically expensive
Today's Global CAPE of 30.2 is higher than 97% of its recorded history.
What it’s meant for returns: at today’s Global CAPE, the historical CAPE–return relationship points to roughly 2.0% a year in real terms over the next 10 years — but with a wide spread (-2.4% to 6.4%, ±1σ). See the model →
- Historical average
- 16.8
- 1867 months
- Historical median
- 16.1
- Percentile rank
- 97th percentile
- vs full history
- All-time range
- 4.8 – 44.2
- Last updated
- August 2026
- since February 1871
The world stock market today
Compare by country →Real, current valuation multiples for Vanguard Total World (VT, FTSE Global All Cap) — the whole investable market in one line. These are today’s trailing multiples.
- P/E
- 22.6
- P/B
- 3.32
- P/S
- 2.55
- Div yield
- 1.59%
Snapshot as of 10 August 2026 · fund-reported index multiples (MSCI/FTSE methodology), USD terms. How does this compare with the world’s own history? There’s no free long history for these trailing multiples, so the cyclically-adjusted Global CAPE above — the one world gauge with a real record — is the place to look: it sits in the 97th percentile of its own range, historically expensive.
Expensive doesn’t mean “sell”
A high valuation lowers the long-run return the market is likely to deliver — it says little about the next year and nothing reliable enough to trade on. Expensive markets can stay expensive, or grow more so, for years. The evidence consistently favours staying invested and diversified over trying to time the market: time in the market has beaten timing the market, and over long horizons broad equity markets have rewarded patient investors even from pricey starting points. Use valuation to set expectations and shape your geographic mix — not as a buy or sell signal. Why valuation can’t time the market →
General information, not financial advice.
What is the CAPE ratio?
What is it?
The Cyclically Adjusted Price-to-Earnings ratio (CAPE), also called the Shiller P/E or PE10, measures how expensive global developed equities are relative to their inflation-adjusted earnings over the prior ten years. By averaging a decade of real earnings it smooths out the booms and busts of the business cycle, giving a steadier read on valuation than a one-year P/E.
How is it calculated?
CAPE is computed by dividing the real (inflation-adjusted) price of the global developed equity market by the average of its real earnings over the trailing ten years. Both price and earnings are expressed in today's currency using a consumer price index, so a CAPE of 25 means investors are paying 25 times a smoothed, inflation-adjusted measure of annual earnings.
Historical interpretation
Historically a high CAPE has been associated with lower subsequent long-run real returns, and a low CAPE with higher returns. It is a valuation gauge, not a market-timing signal: rich valuations can persist or grow richer for years. Compare today's reading to the metric's own history — its average, median and percentile rank — rather than to a single "fair value" number.
Limitations
CAPE has well-known limitations. Accounting standards, payout policies, profit margins, interest rates and sector composition all change over decades, which can shift the "normal" range upward or downward. The ten-year window still includes unusual periods (such as a deep recession) that distort earnings. CAPE says little about the next year and should be combined with other metrics rather than used in isolation. The Global CAPE shown here is an ESTIMATE built from three cap-weighted legs: the United States (~63% of the index) uses Robert Shiller's CAPE, re-leveled to the broad US market a global index actually holds rather than the richer S&P 500 alone (its full 1871+ shape is preserved); developed-ex-US and emerging markets are anchored to published benchmark CAPE levels and rolled forward with a broad regional ETF (EFA, EEM). This keeps the headline in line with professional global-CAPE estimates (~28) while staying reproducible from free data. The blended chart begins in the early 2000s — the first period with data for every region; before that only the US leg exists, so it is left out so the history and percentile stay genuinely global. The dedicated US pages keep the unaltered S&P 500 Shiller series. The single-country pages are rougher, bounded estimates and are NOT used to compute this figure — see the methodology page.
Frequently asked questions
What is a "good" Global CAPE value?
There is no universal threshold. The most useful comparison is against the metric's own history. A reading well above its long-run average and in a high percentile suggests relatively expensive valuations; a reading below average suggests relatively cheap ones.
Does a high Global CAPE mean a crash is coming?
No. CAPE is a long-horizon valuation measure, not a timing tool. Elevated readings are statistically linked to weaker returns over the following decade, but markets can stay expensive for a long time.
How often is the data updated?
The series is monthly. Each data point represents an end-of-month observation. The "last updated" date on the page reflects the most recent observation in the database.
Is the data on this page real?
The site clearly labels every series as either real imported data or generated sample (mock) data. Sample data is realistic in shape but is for demonstration only and must not be used for investment decisions.
Embed or download this chart
Free to use with attribution. The embedded image updates automatically as the data does.
Is the market cheap or expensive? Get the monthly read.
Once a month: the global CAPE and where it sits in history, the cheapest and most expensive markets, and what 10-year return today’s valuation implies. Free, no spam, unsubscribe anytime.
We use a double opt-in and never share your address. See our privacy notice.