Just as I was happy 2009 was rolling off the CAPE calculations, here comes 2020. I will have to put CAPE investing on hiatus for another decade.
Haha, I think you're kidding, but I do believe that the 2017 TJCA messes with CAPE quite a bit. Correct me if wrong! (please)
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I have not seen studies on this
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I mean doesn't it make sense though? CAPE is price over 10 years of earnings averaged accounting for inflation. Those earnings are pre-tax. If you keep more of those earnings, it doesn't make sense to compare the post-tjca cape to pre-tjca, no?
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It shouldn’t. It changes ebitda multiples but only very minorly changes WACC or what you should pay for $1 of eps or fcf.
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You sure about that? As I understand it your fcf after tax goes way up...from 35% to 21% absent tax-scheming.
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