Testing P/E10 in Developed Markets
July 30, 2012 - Fundamental Valuation
Does P/E10, current real (inflation-adjusted) level of a stock market index divided by associated average real earnings over the last ten years, usefully predict stock market returns for developed stock markets other than the U.S.? In their March 2012 paper entitled “Value Matters: Predictability of Stock Index Returns”, Natascia Angelini, Giacomo Bormetti, Stefano Marmi and Franco Nardini test… Keep Reading