# Overview

<figure><img src="https://3870127617-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCBVnUk5c5TVytimjy972%2Fuploads%2FD2bdj0PwwIXZYeBcu4LE%2Fshiller-pe-ratio-001.png?alt=media&#x26;token=4b17851d-d238-40b9-b996-a16ae47ce75c" alt=""><figcaption></figcaption></figure>

The **CandelaCharts – Shiller PE Ratio** (also known as the Cyclically Adjusted Price-to-Earnings Ratio or CAPE) is a powerful valuation metric designed to identify long-term market bubbles and buying opportunities.&#x20;

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[features](https://docs.candelacharts.com/investing/market-valuation-and-on-chain/shiller-pe-ratio/features)
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{% content-ref url="features" %}
[features](https://docs.candelacharts.com/investing/market-valuation-and-on-chain/shiller-pe-ratio/features)
{% endcontent-ref %}

{% content-ref url="usage" %}
[usage](https://docs.candelacharts.com/investing/market-valuation-and-on-chain/shiller-pe-ratio/usage)
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[confluences](https://docs.candelacharts.com/investing/market-valuation-and-on-chain/shiller-pe-ratio/confluences)
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[faqs](https://docs.candelacharts.com/investing/market-valuation-and-on-chain/shiller-pe-ratio/faqs)
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By using 10 years of inflation-adjusted earnings, it filters out short-term economic fluctuations to provide a clear picture of whether the market is fundamentally expensive or cheap.