I'm sure there are other factors that make this metric not great for comparisons with other time periods, e.g.:
- rates
- accounting differences
If that bothers you, just multiply valuations by .75
Doesn’t make much difference even without doing the same adjust for previous eras.
Buffett indicator survives this argument. He’s a smart guy.
I'm sure there are other factors that make this metric not great for comparisons with other time periods, e.g.:
- rates
- accounting differences