Hi everyone,
does it make sense to use CAPE (Shiller PE ratio) as a measurement for analysing single stocks? Stocko offers this criteria but none of the Guru Screens uses it. I only know using CAPE as a measurement for a whole index, e.g. the S&P 500 etc. So I wonder if I can use CAPE (beside other criteria of course) for stockpicking, too. How do you see it?
Thanks for your assessment.
I would suggest a CAPE for individual stocks would only be vaild if the stock is definitely in a stable industry where the business outlook has remained stable for 10 years and is expected to remain stable.
Where a business has been disrupted by the internet, comparison over 10 years is probably of limited use.
