US CAPE Ratio
Current US CAPE
As of June 2026 · ratio
The most recent 21 months (from October 2024) are estimated — rolled forward from the last measured value using the S&P 500 price, because the source series lags by a few months. See the methodology.
- Historical average
- 17.4
- 1865 months
- Historical median
- 16.1
- Percentile rank
- 99th percentile
- vs full history
- All-time range
- 4.8 – 44.2
- Last updated
- June 2026
- since February 1871
Understanding this metric
What is it?
The Cyclically Adjusted Price-to-Earnings ratio (CAPE), also called the Shiller P/E or PE10, measures how expensive US 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 US 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.
Frequently asked questions
What is a "good" US 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 US 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.