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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (77892)	8/18/2025 4:34:16 PM
From: Madharry	Respond to of 78480

the chat gpt calc also takes out nvda also.

To: E_K_S who wrote (77892)	8/18/2025 5:25:02 PM
From: bruwin	Respond to of 78480

Here's what the GROK AI had to say about the SHILLER PE if the MAG 7 are excluded. There's nothing absolutely exact about that PE number, but it seems most likely it would be in the low-to-mid 20's. I've highlighted several referrals ----> "The Shiller P/E ratio, or CAPE (Cyclically Adjusted Price-to-Earnings) ratio, for the S&P 500 excluding the Magnificent Seven (Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, Meta) is not directly provided in the available data. However, we can infer some insights based on related information. The standard Shiller P/E ratio for the S&P 500, as of August 2025, is reported at 38.84. The Magnificent Seven, including Nvidia, have significantly higher valuations, with an average forward P/E ratio of around 35x compared to 15.5x for the S&P 500 excluding these stocks, as of January 2024. The traditional (non-Shiller) P/E ratio for the S&P 500 drops from 28 to 24 when the Magnificent Seven are excluded, indicating their outsized influence on the index’s valuation. Since the Shiller P/E uses inflation-adjusted earnings over a 10-year period, it smooths out short-term fluctuations, but the Magnificent Seven’s high valuations still inflate the overall S&P 500 CAPE. Excluding them would lower the ratio, though not as drastically as the forward P/E due to the longer-term earnings average. While exact figures for the Shiller P/E without the Magnificent Seven are unavailable, it’s reasonable to estimate it would be closer to the historical average for the S&P 500 (around 21-24 when excluding top stocks, based on historical data). For a precise calculation, one would need the 10-year inflation-adjusted earnings for the remaining S&P 500 constituents and their current index price, which isn’t provided here. Given the data, a rough estimate suggests the Shiller P/E excluding the Magnificent Seven could be in the low-to-mid 20s, reflecting a valuation still above historical norms but significantly lower than the full S&P 500’s 38.84."