Wilshire 5000 Ratio To Total U.S. Profits, Cash Flow and Dividends

Although the Wilshire 5000 is an index of virtually all U.S. stocks, the profits, cash flow and dividends in this calculation include public and private companies. Nonetheless, we think the comparison is reasonable to make.

The base year of this indexed data is 2003, the market bottom prior to the 2008 bottom.

At this point, the multiple to profits is lower than 2003, as is the multiple to dividends.  The multiple to cash flow is slightly higher.

With cash flow and dividends being the less volatile than profits, this data shows the current market to be valued at a level very similar to the bottom in 2003.

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