Example: 56,256 billion is equal to 56.256 trillion
The Buffett Indicator, also known as the Market Cap to GDP Ratio, is a simple tool that helps investors gauge the overall valuation of the stock market. Named after Warren Buffett, who considers it the best single measure of where valuations stand at any given moment, this indicator compares the total value of the stock market to the country’s Gross Domestic Product (GDP). This comparison provides a snapshot of whether the market is overvalued, undervalued, or fairly valued.