Valuation Measures

Earth Invest provides the following Valuation Measures:

Home Prices

Home Prices ÷ Family Incomes:

● compared to 5-Year Average ; and

● compared to 10-Year Average .

Home Prices ÷ Family Incomes Growth:

● compared to 5-Year Average ; and

● compared to 10-Year Average .

Stock Prices

Stock Prices ÷ Company Sales:

● compared to 5-Year Average ; and

● compared to 10-Year Average .

Stock Prices ÷ Company Sales Growth:

● compared to 5-Year Average ; and

● compared to 10-Year Average .

By taking the current values of each of these ratios and comparing them to their 5-Year and 10-Year Averages, we’re able to determine whether Home Prices and Stock Prices are Over-Valued or Under-Valued, compared to their long-term averages.

● The more positive (+) the valuation measures above are, the more Over-Valued Home Prices/Stock Prices are.

● The more negative (-) the valuation measures above are, the more Under-Valued Home Prices/Stock Prices are.