San Francisco Real Estate December 2025 Report

S&P 500 Cyclically-Adjusted Price to Earnings (CAPE) Ratio* By Month since January 1985

The CAPE ratio is a stock market valuation measure created by economist Robert Shiller. It is defined as the current price of the S&P 500 divided by the moving-average of 10 years of inflation-adjusted earnings and is principally used to assess likely future returns over longer periods. A higher CAPE ratio can suggest investors are expecting higher future growth, or that the stock market is overvalued.

50

1999-2000

45

2025

40

Dotcom bubble

2021

As of December 1, 2025, the CAPE ratio is at its highest reading since the dotcom bubble.

Pandemic boom

35

2018

▲ Tariff shock

30

2007

Historical average since 1985

25

Pandemic hits

20

Dotcom crash

1987

Financial markets crash

15

2008-2010

Updated December 1, 2025

10

*Source: Robert Shiller, https://shillerdata.com/. Reading are sometimes subsequently revised. Data from sources deemed reliable but not guaranteed and should be considered approximate.

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