Equity market valuations as of July 2015

1. Plan Right. Invest Smart. Live Well.
Equity Market Valuations
July 2015
Resource Planning Group
10 Glenlake Parkway
South Tower, Suite 150
Atlanta, GA 30328
Phone: 770.671.9500
Toll Free: 877.671.7526
Fax: 770-671-1272
www.rpgplanner.com

2. Plan Right. Invest Smart. Live Well.
Rolling 15 Year S&P 500 Predicted vs. Actual Real Returns15 Year S&P 500 Real Returns vs. 10 Year CAPE
y = -0.0047x + 0.1449
R² = 0.4877
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
0 5 10 15 20 25 30 35 40
ActualFuture15YrRealReturn
10-Year CAPE
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Actual Future 15 Yr Real Return
15 Yr Forecasted Real Return (CAPE)
10 Year Cyclically Adjusted P/E (CAPE)
This valuation metric, also called the Shiller P/E, is calculated as price divided by
the average of the prior ten years earnings, adjusted for inflation.

3. Plan Right. Invest Smart. Live Well.
0
5
10
15
20
25
30
35
40
45
50
Average
26.2
17.7
10 Year Cyclically Adjusted P/E (CAPE)
This valuation metric, also called the Shiller P/E, is calculated as price divided by
the average of the prior ten years earnings, adjusted for inflation.

4. Plan Right. Invest Smart. Live Well.
Rolling 15 Year S&P 500 Predicted vs. Actual Real Returns15 Year S&P 500 Real Returns vs. Q-Ratio
y = -0.1162x + 0.1363
R² = 0.5166
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
0% 50% 100% 150% 200%
ActualFuture15YrRealReturn
Q-Ratio
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Actual Future 15 Yr Real Return
15 Yr Forecasted Real Return (Q-Ratio)
Q-Ratio
This valuation metric was developed by Nobel Laureate James Tobin and is calculated
as total price of the market divided by the replacement cost of all its companies.

5. Plan Right. Invest Smart. Live Well.
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Average 71%
106%
Q-Ratio
This valuation metric was developed by Nobel Laureate James Tobin and is calculated
as total price of the market divided by the replacement cost of all its companies.

6. Plan Right. Invest Smart. Live Well.
Rolling 15 Year S&P 500 Predicted vs. Actual Real Returns15 Year S&P 500 Real Returns vs. Mkt Cap/GDP Ratio
y = -0.1459x + 0.1498
R² = 0.5233-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
0% 50% 100% 150% 200%
ActualFuture15YrRealReturn
Market Cap / GDP
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Actual Future 15 Yr Real Return
15 Yr Forecasted Real Return (Q-Ratio)
Corporate Market Value / GDP
This metric, made popular as Warren Buffett’s favorite market valuation tool, compares
the total price of the market to national GDP.

7. Plan Right. Invest Smart. Live Well.
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Average
127%
69%
Corporate Market Value / GDP
This metric, made popular as Warren Buffett’s favorite market valuation tool, compares
the total price of the market to national GDP.