What is Market-Cap-to-GDP (Buffett Indicator)?
Market-Cap-to-GDP (Buffett Indicator) (also called buffett indicator) — Total stock market capitalisation divided by GDP — a broad gauge of whether the overall market is cheap or expensive.
In simple terms
A ratio well above 100% can signal an expensive market.
Why Market-Cap-to-GDP (Buffett Indicator) matters when you invest
Understanding market-cap-to-gdp helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Market-Cap-to-GDP (Buffett Indicator) — frequently asked questions
What is Market-Cap-to-GDP (Buffett Indicator)?
Total stock market capitalisation divided by GDP — a broad gauge of whether the overall market is cheap or expensive.
What does Market-Cap-to-GDP (Buffett Indicator) mean in the stock market?
Total stock market capitalisation divided by GDP — a broad gauge of whether the overall market is cheap or expensive. A ratio well above 100% can signal an expensive market.
Can you give an example of Market-Cap-to-GDP (Buffett Indicator)?
A ratio well above 100% can signal an expensive market.
Related terms
Put it into practice — open a free account.
Enter your mobile number to get started — then download the ROAR app to finish KYC in about 10 minutes.