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TagsHow does S&P CAPE affect the valuation of digital currencies?
Clay HoldtNov 26, 2021 · 3 years ago1 answersCan you explain how the S&P CAPE (Cyclically Adjusted Price-to-Earnings) ratio affects the valuation of digital currencies?
1 answers
- At BYDFi, we believe that the S&P CAPE ratio can be a useful tool in assessing the valuation of digital currencies. The CAPE ratio takes into account the average inflation-adjusted earnings of a digital currency over a 10-year period, providing a long-term perspective on its valuation. However, it's important to note that the S&P CAPE ratio was originally designed for traditional stocks and may not fully capture the unique dynamics of the digital currency market. Therefore, it should be used as part of a comprehensive analysis that includes other valuation metrics and factors specific to digital currencies.Nov 26, 2021 · 3 years ago
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