For example, the cyclically adjusted P/E ratio ( CAPE ), which tracks the average 10 pe adjusted for inflation, indicates that the market is 61% overvalued. The current CAPE is 25.69, compared to its historical median value of 15.93. With the stock market recently peaking at a CAPE of 26.12, some investors are warning that a bear market may be imminent given that this high of market valuation is often associated with sharp stock crashes.