Results for CFMV Q3-10:
The results for 3
Quarter CY-10 earnings (Jul-Sep) Combined Fair Market Value (CFMV) using data setsfrom the S&P Website(S&P Website ) and Professor Robert Shiller(Shiller Online Data)are listed below:
Nominal period trailing earnings
Calculated using Shiller’s method of current S&
P 500 Index priceat month close divided by average earnings over column period earnings.
CPI Adjusted (Shiller Method-CAPE)
Professor Shiller adjusts current S&P 500 Index price and 4quarter trailing earnings at month close by CPI, then divides CPI-adjusted price by CPI-adjustedearnings 10 years. The 10 year calculation is the original Shiller Method
the other periods arecalculated the same method but for differing periods.
Monthly P/E Averages
Calculated by dividing monthly price by monthly 4 quarter trailing earnings.NOTE: This calculation results in the same number whether using CPI or nominal.
Historical Y-O-Y Earnings Growth:
Calculated by averaging of entire time period earnings growthyear over year.
Combined Fair Market Value -
Calculated by averaging Current Price (sentiment), average of allperiods nominal and Monthly P/E, and Y-O-
Y earnings growth. This does not include Shiller’s CAPE.
S&P Index = Average of daily closes for month end.