Replies to post #125108 on Biotech Values

[DewDiligence]

For starters, the 10-year averaging period does not reflect the duration of a typical business cycle, so the CAPE acronym is itself a misnomer.

[biomaven0]

>>Shiller's CAPE metric

My big complaint is that it is not normalized for long-term interest rates. An earnings yield of 10% is a very different beast depending on whether long term risk-free rates are 2% or are 10%.

Peter