Is there anyplace where you can plot CAPE vs a single stock ?

You probably won't get the result you hope for.

The reason that CAPE has such strong predictive power for forward returns over a multi-year horizon is that the value of the companies a very broad index in a very broad economy can grow in value only as fast as that economy, which is a relatively small and predictable rate. That same reasoning does not work for a single company, which can have sudden changes for the better or for the worse.

There are a few companies with unusually steady economic progress, showing up as pretty steady progress in real earnings per share. A long term chart of their P/E ratios can give you a pretty good idea of the current valuation level. Stockcharts.com is one I use, as you get get charts with rolling EPS and rolling P/E ratios. But even with those you have to understand the business well enough to have an idea of the likelihood of the trajectory continuing into the future a somewhat similar way.

Jim

Berkshire Hathaway FAQ

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