Reality Gap

A Research-Based Indicator for Fundamental Coverage

Reality Gap (RG) measures the relationship between a company's market capitalisation and its estimated fundamental base — derived from smoothed earnings and tangible equity. It is a heuristic coverage indicator, not an intrinsic value model.

All data shown is illustrative. See the methodology for details.

M(S&P 500)RG10

Trailing P/E 18.0 · 2026-04

Macro Approximation

M(Index)RG10 = CAPE ÷ 10 (S&P) or trailing P/E ÷ 10 (DAX). Values above 2.0 indicate above-average stretch; above 3.5 is historically rare.

Methodology

How RG8, RG10, and RG12 are constructed and what they measure.

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Working Paper

The full methodological foundation and theoretical context.

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Rankings

A comparative view of companies sorted by their RG10 value.

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Companies

Individual RG profiles for each company in the dataset.

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Research

Fragility analysis: Core RG vs. Narrative RG, spread, and market structure.

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Macro RG

Market-level RG approximation via Shiller CAPE (S&P 500) and trailing P/E (DAX 40).

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