# Is there a Shiller PE ratio for the TSX?



## mriegger (May 18, 2012)

The recent market downturn has made me wonder how the old Shiller PE ratio was doing these days.

The S&P500 Shiller PE is easy to find:http://www.multpl.com/ says it is a somewhat lofty 20x.

A bit of googling gave me this site for Europe: http://mrmarket.eu/. Which says a 12x multiple for the MSCI Europe index. 

I couldn't find anything for the TSX though. Has anyone seen something like this or knows how to easily calculate it? I'm a bit curious to know what it is.


----------



## avrex (Nov 14, 2010)

Finding the relevant earnings data for the TSX might prove difficult.

To get some insight into how the calculation is performed for the S&P, have a look at the <Data> tab in the spreadsheet below
Scroll down to approx row 1700, to look at the cell formulas, to see the calculations for 2011 (which includes earnings data) and the early months of 2012.

Shiller P/E10 Data for S&P


----------



## mriegger (May 18, 2012)

Thanks for the data avrex. I went through it and learned that it is super easy to calculate. Unfortunately while Standard and Poor's website had S&P500 downloadable earnings, they had nothing for either the TSX 60 or the TSX Composite.


----------



## rusty23 (Jan 25, 2012)

stupid question but the "real price/ real earnings etc" is that the value after inflation?


----------



## mriegger (May 18, 2012)

rusty23 said:


> stupid question but the "real price/ real earnings etc" is that the value after inflation?


My understanding is yes. I think you divide the price or earnings by the CPI index to normalize it into real price or real earnings (inflation adjusted numbers)


----------



## Jungle (Feb 17, 2010)

Sorry what is the difference between Shiller PE and regular PE?


----------



## MarkP (Mar 30, 2011)

It is calculated over the trailing 10 years, taking into account inflation, therefore taking into account a business cycle. P/E has issues, in 2009, during a market bottom the P/E was quite high due to poor earnings over the previous 12 months.


----------



## MarkP (Mar 30, 2011)

Canada's PE10 was at 18.9 at the end of April, US at that point was at 21.8.


----------

